Chips Dominate Bearish Options Flow on Oversold Readings

Semiconductor names are drawing the heaviest negative options bets in the US market this Friday, as chip stocks sit at multi-month oversold levels and Iran deal headlines pull energy traders in the other direction.

NVDA carries a 14-day RSI of just 25, its most oversold reading in recent months. MU sits at 27 and AMD at 29. All three rank among the top names for negative options bets over the past seven days, according to ORTEX screening data. Options expiries for each stock run weekly through mid-November, giving traders plenty of near-term runway to press bearish positions.

SNDK, the former Western Digital storage unit that now trades independently, tells a sharper story. The stock has gained 240% year-to-date yet carries an RSI of just 24. That divergence between price performance and momentum is attracting options attention across its November expiry chain.

The energy side of the tape is moving in the opposite direction. Reports that the US and Iran are edging toward a nuclear agreement sent oil lower and lifted SPY, which snapped a three-day losing streak. Options on USO, the crude oil ETF, are active through year-end, with the January 2027 expiry drawing particular interest from traders hedging a diplomacy-driven supply shift.

WYNN is a name to watch for index-driven options flow. ORTEX's Index Rebalance Radar puts WYNN within 0.6% of the S&P MidCap 400 entry line, carrying around 28% addition probability. A confirmation would force meaningful buying, and options traders appear to be positioning around that possibility with activity running to the December expiry.

ABNB got a boost from Cantor Fitzgerald, which raised its price target to $180 while maintaining a neutral rating. Options activity there extends to January 2027, suggesting some traders see the target revision as a floor rather than a ceiling.