Puts Flood Chips as Rate Fears Bite

Bearish options flow is dominating the chip sector this week. NVDA and MU sit at the centre of the action as rate-rise worries batter Nasdaq for a second straight day.

NVDA carries the most active options calendar in the market. It shows expiries every two to three days from today through September. That density of near-term contracts points to traders buying short-dated protection. NVDA's ORTEX momentum score dropped sharply — from 62.8 on June 15 to 55.0 today — its steepest slide in a month.

MU reports earnings this week. Options players are stacking up expiries through July and August. That pattern typically signals elevated hedging ahead of a binary event. Traders expecting a volatile print are buying both sides, but the near-dated expiry cluster tilts toward defensive positioning.

ORCL is another name under pressure. Oracle just announced 21,000 job cuts. Options expiries are thinly spread but include a July 20 date that aligns with post-announcement sentiment shifts. Put volume is likely elevated.

NKE reports this week too. Options expiries run weekly through July. A June 26 expiry lands right after results. Traders positioning for a down move have plenty of near-term strikes to work with.

Rate worries are the macro driver. Bond yields rising has consistently pushed defensive put flows into rate-sensitive tech. Watch SPY expiries through month-end for the broader read on market fear.