Options sentiment is split heading into a key earnings week for the chip sector. Bears are circling several large-cap tech names while defensive and industrial stocks attract heavy call flow.
NVIDIA dominates the market's attention this week. The $5.25 trillion chip giant carries an RSI near 51 — neutral territory. But ORTEX data shows significant negative options bets flooding the market across large-cap semiconductors ahead of its results. Traders appear unwilling to take directional risk lightly.
Reddit is a standout bearish signal. Its short score sits at 64, among the highest in the interactive media space. The stock is down 33% year-to-date. DTC of 4.6 days suggests considerable short positioning. Options flow is reflecting that pessimism.
Meta Platforms shows a worrying technical picture. RSI has dropped to 38.7 — approaching oversold territory. The stock is off 17% year-to-date. Its analyst return potential stands at 37%, pointing to a wide gap between current price and targets. That gap is drawing put buyers and call buyers in equal measure.
On the bullish side, industrial and defensive names are seeing 100% positive options flow. Parker-Hannifin and both show all-positive options bets over the last seven days. Investors appear to be rotating out of volatile tech into steadier names.
Micron Technology tops negative options bet volumes among large-cap stocks — despite a stunning 239% year-to-date gain. Traders may be locking in profits via puts ahead of any sector volatility from NVIDIA's report. Its DTC is just 0.19 days, meaning short sellers are not piling in. The options flow tells a different story to the share price momentum alone.
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.
