Chip Sector Rebound Triggers Mixed Options Activity as Traders Hedge Gains
Options traders responded to a Monday chip sector rebound with a split strategy, heavily buying puts on the VanEck Semiconductor ETF while placing bullish bets on individual names like Marvell Technology, Intel, and Cerebras. The activity follows weeks of extreme volatility in semiconductor stocks, with the SMH ETF bouncing more than 5% on the day. The divergent positioning signals that traders remain skeptical of a sustained sector-wide recovery even as they chase upside in select chipmakers.
On Monday, options activity in the semiconductor sector reflected a cautious but selective outlook among traders following a broad chip stock rebound. Put volume in the VanEck Semiconductor ETF (SMH) more than doubled call volume, with over 10% of the $217 million in premiums concentrated in 550-strike puts expiring August 21 — a level roughly 7% below current prices. At the same time, traders placed notably bullish bets on Marvell Technology, which is set to join the S&P 500 on June 22, with calls outnumbering puts three to one and most activity targeting the $300 level. Intel also saw elevated options volume — nearly twice its daily average — driven largely by calls after reports that Alphabet commissioned 3 million in-house AI chips from the company. Cerebras, a newer entrant in the AI chip space, saw over $50 million in premiums change hands, almost entirely in calls. Bespoke co-founder Paul Hickey noted the unusual volatility in the semiconductor index over the past two weeks and cautioned against expecting an immediate selloff, predicting continued turbulence heading into the July 4th holiday.
What's missing
The article does not address the broader context driving recent semiconductor volatility, such as U.S.-China trade tensions, export controls on advanced chips, or the AI investment cycle — all of which are key drivers of the sector's recent price swings. Additionally, the Alphabet-Intel chip report is described as unconfirmed, which could significantly affect the reliability of the bullish Intel options thesis.
How coverage differed
CNBC framed the story primarily through a market mechanics and options-flow lens, emphasizing trader skepticism of the broader sector rebound while highlighting individual bullish bets. The framing is largely neutral but leans toward sophisticated financial audiences, with limited discussion of the underlying macroeconomic or geopolitical factors driving chip sector volatility.
What different sources said
- CNBCCenter
Chip rebound sparks hedging flurry from traders
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