Defensive Bets Build as Chips Bleed

Options traders are turning cautious across several names this Friday, with earnings-linked hedging and a brutal week for chip miners driving the clearest signals in the market.

IREN has fallen 31% over the week. The crypto miner carries a short score of 68.8 and an RSI of just 31, deep in oversold territory. Its RSI is the same as NVDA's, which has shed $1.39 trillion in market cap since its October peak. NVDA's short score sits at a mild 30, but the stock is down 7% year-to-date and analysts still see 63% upside. Options expiries for NVDA stack up weekly through January 2027. That busy calendar reflects persistent hedging demand, not confidence.

NerdWallet heads into its Q3 print with options traders positioned defensively. Its short score of 63 and 4.9 days-to-cover suggest meaningful short pressure. Only two expiry dates are available. Put activity concentrated at tight expirations is a standard pre-earnings protection signal.

Omada Health also reports imminently. The digital health firm has a short score of 59. Medicare Advantage penetration hit a record 51.1% in July, per ORTEX Alt Data. That tailwind has not softened bearish hedges ahead of the print.

GameStop carries a short score of 55 and 5.8 days-to-cover, with active expiries running through January. Options activity there rarely signals anything subtle.

The broadest theme this Friday is defensive positioning into a wall of small and mid-cap earnings. Short scores are elevated. RSIs are low. Traders are buying protection first.