Sep. 12 at 10:36 PM
What's up with
$SMH?
After a +3% rally over 5 days, we're seeing aggressive put hedging around
$300
A
$1.11M ask-side golden sweep in 9/19
$297.5 puts and fresh sweeps at
$302.5,
$300, and
$297.5 are focusing on downside protection
$300 is the pivot
A break could lead to more downside but holding might bleed these hedges
Also, about 73k contracts of far-OTM 9/19
$205 to
$210 puts were snapped up at 100%+ IV
This tail-hedge demand could keep front-week IV elevated, which favors defined-risk strategies
Price is flat today but the full picture is still developing