An options trade that wins if the red-hot chip trade cools off in the second half

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An options trade that wins if the red-hot chip trade cools off in the second half
MarketsPersonal FinanceMicron Technology Inc
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Jeff Kilburg analyzes the chip sector and describes how he's playing it with options.

Investors may have just seen the canary in the semiconductor coal mine fly by. Although Micron has not had Nvidia's meteoric performance, it has been a stellar stock, doubling in the last year and up over 50% in 2024. The AI boom has buoyed memory chips higher as these chips have become a more important component for artificial intelligence accelerators. However, the possibly unrealistic bar now being set for AI earnings reports saw Micron drop more than 7% on high volume.

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