Investors may be too bullish on chip stocks. This options strategy can hedge against a pullback

  • 📰 CNBC
  • ⏱ Reading Time:
  • 47 sec. here
  • 11 min. at publisher
  • 📊 Quality Score:
  • News: 53%
  • Publisher: 72%

Breaking News: Markets 뉴스

Markets,Personal Finance,Vaneck Semiconductor ETF

Chips remain on fire in 2024 despite the recent volatility in earnings reports.

Investor sentiment unequivocally is that semiconductors will continue to rally into year-end. That bullish consensus makes this former CBOT pit trader take pause, and I believe now is the time to hedge some semiconductor exposure. I want to use put options in the VanEck Semiconductor ETF to mitigate downside risk. As Nvidia CEO Jensen Huang has been on a coast-to-coast roadshow, the AI darling has hit a new all-time high of $140.89 on Thursday.

, the Dutch microchip-equipment maker. got taken to the woodshed after saying the market recovery for semiconductors will take longer than expected, sending shares sharply lower. Again, this has been offset as NVDA's CEO consistently has articulated demand is "insane." We have to wait until 11/21 for their earnings. For clarity, I am not walking away from my AI exposure, I just want to hedge and synthetically book profits as SMH is up more than 40% after rising 72% in 2023.

Kilburg owns SMH puts. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY .

Click here for the full disclaimer.Tony Zhang

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 12. in KR
 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

대한민국 최근 뉴스, 대한민국 헤드 라인