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Semiconductor ETFs Face Volatility Ahead of Nvidia Earnings

Semiconductor ETFs Face Volatility Ahead of Nvidia Earnings

Published:
2025-05-28 08:17:01
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Investors are bracing for potential turbulence in semiconductor ETFs as Nvidia prepares to report earnings. The VanEck Semiconductor ETF (SMH) has seen a surge in put-option activity, reaching its most defensive level in ten months. With Nvidia comprising roughly 20% of SMH’s holdings, disappointing results could send ripples across the sector.

Options traders are positioning for downside risk at an unprecedented pace. Daily put-to-call ratios on SMH have climbed to 2.4:1 over the past fortnight. Tuesday’s session alone witnessed 105,000 put options traded versus just 16,000 calls - including a single 50,000-contract bearish bet.

|Square

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