Options traders increased buying of put options on the iShares Semiconductor ETF (SOXX) as semiconductor stocks experience a volatile rally with sharp drawdowns this year. The sector has seen gains over 300% from 2025 lows but faces risks of sudden steep declines similar to past tech rallies. Using put spreads offers a cost-effective way to hedge against potential sharp drops without betting on a crash. This cautious strategy reflects concerns about ongoing volatility in chip stocks ahead of key earnings like Micron's.
Tom Lee of Fundstrat views the recent sharp drop in semiconductor stocks as a typical mid-cycle buying opportunity within a bull market. Historical data shows that semiconductor indexes often rebound strongly after one-day drops of 6% or more, with a...
On June 23, 2026, the leveraged semiconductor ETF SOXL fell sharply by 23.06% in a single session, much more than its non-leveraged peers SOXX and SMH, which dropped around 7-8%. SOXL aims to deliver 3 times the daily performance of the semiconductor...
Janet Mui of RBC Brewin Dolphin says the recent drop in AI and semiconductor stocks is a normal profit-taking after a rapid rise, not a sign of fundamental problems. Despite a sharp single-day selloff, market volatility remains low, indicating no pan...
Michael Burry, famed for his 2008 housing market bet, is now taking bearish positions on semiconductor stocks, including Nvidia, through put options expiring next January, anticipating a steep correction possibly over 50%. Despite this, semiconductor...
