Options markets are flashing bearish signals in pockets of the market. Chip stocks and defense names are drawing the most defensive positioning right now.
DRS — Leonardo DRS — sold off hard Friday while peers like LHX, LMT, and NOC held steady. Its RSI has dropped to 28.9. That is close to extreme oversold territory. Options bears are likely picking up cheap puts here.
NVDA leads negative options bets by raw dollar volume. Negative bets dwarf most peers over the past seven days. The stock is up 16.7% YTD but sentiment in the options market has cooled sharply.
MU — Micron Technology — tops the negative options flow table. It has surged 226% YTD. Traders appear to be locking in protection at elevated levels. AMD also shows heavy negative options flow after a 117% YTD run.
The most bearish options score goes to names with zero positive bet share over the trailing week. TE Connectivity and Fastenal each recorded 0% positive options flow. That is a complete absence of bullish bets.
On the flip side, WDAY — Workday — shows an options score of 49 with a 66.2 RSI. Its software peer group has seen shorts retreat recently. Options traders appear cautiously positioned ahead of the next earnings report.
CLOV stands out for a different reason. Insiders are selling into an 80% rally. Options activity there warrants close attention. Any sudden put sweep could confirm insider skepticism is spreading to derivatives markets.
This is not financial advice.
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.
