Options flow is flashing caution ahead of a packed earnings week. Micron Technology topped the ORTEX negative options bets screen for the week. The chip stock has surged 279% year-to-date. Traders are paying up to protect those gains before quarterly results.
NVIDIA also ranks among the highest negative options bets this week. That follows news of a director selling $411 million in shares — a rare insider event that clearly rattled sentiment. NVDA's RSI sits at 55, well off overbought territory, signalling the market is undecided.
Nike stands out as a high-conviction bearish setup. The stock is down 44% year-to-date. Days-to-cover sits at 4.2. Its RSI of 35 puts it near oversold territory. Analysts still see 31% upside, but options flow suggests traders are not convinced a recovery is near.
Advanced Micro Devices carries the week's highest RSI at 73. That puts it firmly in overbought territory. Negative options bets on AMD rank fourth. A pullback trade is gaining traction.
Meta Platforms shows the largest raw count of negative options orders this week. Despite a strong short score of just 29, put activity is spiking. Meta reports earnings soon, and traders appear to be hedging rather than betting outright on a drop.
The common thread across all five names is earnings risk. Implied volatility is elevated. Protective put buying is the dominant signal. Caution is the trade of the week.
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.
