Significant Options Activity Observed in Micron and Nvidia
On Friday, significant options trading activity was observed in both Micron (MU) and Nvidia (NVDA), with a notable bearish bias. Over 180,000 put contracts were traded for the S&P Global Semiconductor Index ETF (SMH) by midday compared to just over 50,000 calls, indicating strong pessimism in the semiconductor sector. The total premium tied to puts was $46 million versus $26 million for calls. In Nvidia, a large trade of 100,000 put contracts at the 180-strike price expiring January 15 was executed for $21 million, signaling expectations of an over-22% decline in stock value. In Micron, deep-in-the-money puts with strikes ranging from 2,250 to 2,500 were heavily traded near the ask price, suggesting a net bearish position worth approximately $14.5 million. Such activity may reflect concerns over sector performance or high borrowing costs for shorting stocks directly.
Topics: Micron Technology Nvidia options trading semiconductors