Semiconductor stocks and an AI bubble warning dominated options activity on August 25, pushing two-way flow to elevated levels across the sector.
MU topped both the bullish and bearish options bets over the past week — a rare split that signals maximum uncertainty. Analysts still see 66% upside. The stock is up 219% year-to-date. That gap between price performance and analyst targets is drawing options traders on both sides of the trade.
INTC and AMD also featured heavily in negative bets. Both carry RSI readings below 43 — technically weak territory. NVDA sits at RSI 44 with analysts pricing in 46% further upside. Yet negative options bets remain elevated, pointing to hedging activity ahead of macro uncertainty.
The trigger was stark. A widely circulated note warned Jim Cramer's recent bullish calls on AI stocks could signal a bubble top — historically a contrarian red flag. That headline swept across SPY-linked names and chip stocks simultaneously.
ZM added a separate catalyst. Zoom Communications beat Q2 estimates on both lines but guided Q3 below expectations. The stock's SI % of FF sits at just 2.6% — short sellers aren't piling in yet. But options flow shifted bearish on the guidance miss.
META and MSFT also saw elevated negative bets. Both stocks are down double digits year-to-date. RSI on Meta sits at just 42 — the lowest in the large-cap tech group. That oversold reading is drawing call buyers who see a potential bounce.
The overall picture: semiconductor options are pricing in volatility, not direction. AI bubble fears are real enough to move flow — but not yet decisive enough to break bulls.
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.
