Bears Load Up on Chips; Bulls Bet on Industrials

Options markets are sending mixed signals this week. Bearish bets are heaviest in semiconductors. Micron Technology and NVIDIA top the one-week negative options flow table, with Advanced Micro Devices and Intel also drawing large put-side interest.

Chip stocks have been volatile. CNBC noted the S&P 500 fell as a "chip stock rebound fails," with AI-linked names sliding across Asia-Pacific too. That macro backdrop is fueling defensive positioning in the options market on semiconductor names.

Flipping to the bullish side, industrials show 100% positive options flow this week. Trane Technologies, Emerson Electric, and Illinois Tool Works all scored maximum positive bet ratios over seven days. Midstream energy plays Enterprise Products Partners and Energy Transfer mirror that bullish tone.

Meta Platforms draws the third-largest negative options bets among liquid large-caps. That comes despite the TikTok $100M Alabama settlement — a headline that briefly boosted sentiment for Meta as a rival.

On single stocks, Chewy stands out for a different reason. Bears are retreating. Short interest sits at 67% of free float. Yet availability of shares to borrow has surged to 433% of SI. That squeeze pressure may be fading fast.

Costco carries just 1.7% SI despite analyst target cuts hitting the stock. Its RSI is at 38 — oversold territory. Options bulls may find value there into its Q4 earnings event.

Geopolitical noise around Iran is lifting defense sector bids in Europe. That volatility premium may bleed into US options expiries as the week closes.

This article is not financial advice.