Options markets are flashing caution signals in chip stocks ahead of a pivotal earnings week. Micron Technology reports this week. Short sellers have steadily rebuilt positions since early June. ORTEX data shows MU short interest at 3.34% of free float, up from 3.09% on June 1.
Applied Materials is drawing similar attention. AMAT has active options expiries running through September. Short interest sits at 2.61% of free float. Insiders at chip companies have been cashing out, per market news flagging "Chips Chiefs Cash Out."
Dell Technologies stands out with short interest at 5.71% of free float — the highest among this group. A wave of Dell put activity aligns with insider selling headlines. Dell's options chain runs all the way to September 18, giving bears room to position ahead of any demand slowdown.
Tesla carries 23 active expiry dates through September. Options flow spans daily contracts to quarterly. Short interest is 2.94% of free float. The stock faces regulatory scrutiny after a fatal crash triggered a federal probe.
FedEx also reports this week. Its options market is leaner — just nine expiry dates available. SI is a low 1.69% of free float. Traders appear cautious rather than aggressively bearish heading into results.
Across the chip complex, short interest in dollar terms at Micron crossed $42 billion on June 18. That is the highest level in recent weeks. Options positioning into the earnings event suggests traders are buying protection. Bears and cautious bulls are both active in the near-term expiries.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
