Pelosi’s Asian Tour Sparks Bearish Activity in Chip Stocks

by | Aug 1, 2022 | Options

In Monday’s Blitz Daily with Lance Ippolito, we take a look at chipmaker Nvidia as an upcoming political visit spikes options volumes.

We’re seeing loads of choppy flow to start the week as we get set to dig into another big stretch of earnings… 

But if there’s one thing big-money traders seem to agree on Monday, it’s that they’re all bearish on semiconductors. 

It looks like Speaker of the House Nancy Pelosi isn’t backing down from her announced trip to Taiwan, which includes meetings with government leaders. 

The trip has drawn fire from officials in Beijing, who consider the island nation a part of China, claiming the People’s Liberation Army is prepared to take action in response. 

While the statement is likely nothing more than saber-rattling, Wall Street isn’t expecting any positives from the semiconductor sector, which has a major presence in Taiwan. 

We’re even seeing major protective put flow including big buys in one of Pelosi’s favorite stocks, Nvidia — with at least one bearish trader sweeping up over 600 of the Aug. 5 expiration, $175 strike puts for more than $108,000 in premium…. 

And there are plenty more chip names seeing bearish flow where that came from… 

  • NVIDIA Corp. (Nasdaq: NVDA): Aug. 5, $175 PUT.
  • Micron Technology Inc. (Nasdaq: MU): Aug. 5, $61 PUT.
  • Advanced Micro Devices Inc. (Nasdaq: AMD): Aug. 5, $88 PUT.
  • Under Armour Inc. (NYSE: UAA): Aug. 5, $10 PUT.
  • Suncor Energy Inc. (NYSE: SU): Jan. 20, 2023, 37 CALL.
  • Taiwan Semiconductor Manufacturing Co. (NYSE: TSM): Aug. 5, $82 PUT

Check out my short video and I’ll break down the day’s most unusual options order flow in no time flat! 

P.S. We thought we’d seen just about everything inside financial markets…

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Blitz Daily With Lance Ippolitto

At Weekly Blitz Alerts, we follow the big fish and what they’re buying. And we do that with my proprietary Blitz Tracker, which alerts me to big, institutional options order flow throughout the day. Then we get in on these plays and follow the “smart money.”  

By doing this, we cash in whether the broader market is going up, down or sideways. 

The Blitz Daily with Lance Ippolito is where I go over a handful of options trades that hit my Blitz Tracker each day, Monday through Thursday. I will break down the trade with the sexiest order flow and tell you exactly what I think can happen with that stock by the next day’s opening bell. 

If you want in on these fast-moving options plays, with entry, exit and profit targets sent directly to you via text and email alerts, be sure to sign up for Weekly Blitz Alerts!  

In the meantime, you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading — and printing money — on WealthPress.com!

WRITTEN BY<br>Lance Ippolito

WRITTEN BY
Lance Ippolito

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