Semiconductor ETFs Face Volatility Ahead of Nvidia Earnings
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.