AI Chip Options Signal a Crowded Trade

Options markets are flagging a split personality in the AI hardware space. Super Micro Computer surged Monday. Yet short sellers have not given up — SI % FF still sits at ~13.4%, down from a peak near 15.9% in mid-June.

That short-covering squeeze is drawing call buyers. SMCI has near-term expiries stacked through June 26 and into July. The concentration of short-dated contracts suggests traders expect the move to be sharp and fast, not prolonged.

NVIDIA tells a different story. Short interest holds steady at just 1.25% of free float. Yet NVDA has the densest options chain in the group — 27 expiry dates through September, including same-day contracts expiring today. That depth signals massive speculative flow. Traders are using zero-day options to ride intraday momentum, not build directional bets.

Micron reports earnings this week. Options activity is dense around June 24-26 — the closest expiries to the report date. This is classic pre-earnings positioning. Traders are buying both sides, but the skew will tell the real story as we approach the print.

Arrowhead Pharmaceuticals earned a European Commission drug approval today. Its options chain, however, is sparse — only July, August, and September expiries. That thin structure limits the ability to play the catalyst quickly. Despite the headline, the options market wasn't positioned for this move.

Across the board, near-term call-heavy positioning in tech contrasts with broader SPY put hedging through year-end. The market is bullish on AI names short-term. But tail-risk protection isn't going away.

This article is not financial advice.