Chips Lead Bearish Options Flow

Semiconductors dominate unusual options activity this week. Negative bets are piling into the sector as earnings season heats up.

Micron Technology tops the bearish options flow table. The chip stock is up 256% year-to-date. That extreme run has attracted heavy put activity ahead of its Q4 results. Its ORTEX short score sits at 29.8 — relatively low — but options traders are not sharing that calm view.

NVIDIA and Advanced Micro Devices show the highest negative bets volume among large caps this week. Both names also rank high on positive bets. That two-sided flow signals heightened uncertainty rather than outright bearish conviction.

Meta Platforms leads the bullish side. It tops the positive bets ranking. Its RSI of 65.9 supports the call-heavy tilt. Year-to-date the stock is barely flat, so options traders appear to be positioning for a catch-up move.

Chewy stands out for a different reason. Its short score is 57.2. Days-to-cover hit 3.3. Its RSI is just 37.8 — near oversold territory. The stock is down 38% this year. Those conditions often attract speculative call buyers hunting a bounce.

lululemon is another notable name. Down 53% YTD, its short score of 57.5 is elevated. Its RSI of 36.5 puts it in oversold territory too. Negative options bets in retail have been rising all week.

Morgan Stanley's downgrades of utilities names — including NextEra Energy and PPL — are also drawing defensive put flow into that sector. With earnings season accelerating, volatility across these names looks set to stay elevated.