Chips remain on fire in 2024 despite the recent volatility in earnings reports.
Investor sentiment unequivocally is that semiconductors will continue to rally into year-end. That bullish consensus makes this former CBOT pit trader take pause, and I believe now is the time to hedge some semiconductor exposure. I want to use put options in the VanEck Semiconductor ETF to mitigate downside risk. As Nvidia CEO Jensen Huang has been on a coast-to-coast roadshow, the AI darling has hit a new all-time high of $140.89 on Thursday.
, the Dutch microchip-equipment maker. got taken to the woodshed after saying the market recovery for semiconductors will take longer than expected, sending shares sharply lower. Again, this has been offset as NVDA's CEO consistently has articulated demand is "insane." We have to wait until 11/21 for their earnings. For clarity, I am not walking away from my AI exposure, I just want to hedge and synthetically book profits as SMH is up more than 40% after rising 72% in 2023.
Kilburg owns SMH puts. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY .
Click here for the full disclaimer.Tony Zhang
Markets Personal Finance Vaneck Semiconductor ETF Taiwan Semiconductor Manufacturing Co Ltd Taiwan Semiconductor Manufacturing Co Ltd NVIDIA Corp ASML Holding NV ASML Holding NV Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fall 2024 Winter 2025 2024 / 2025 » Fashion AllureLatest Fashion Trends, Shoes and Accessories, Celebrity Style
Read more »
2024 Singapore Grand Prix 2024 Odds, Picks & Predictions: McLaren, Ferrari Drivers in Front of VerstappenMax Verstappen rode a historic win streak into last year's Singapore GP and suffered a massive upset in what would be his final loss of 2023. But the defeats are piling up quickly for him and Red Bull in 2024, making him an underdog this Sunday.
Read more »
2024 United States Grand Prix 2024 Odds, Picks & Predictions: Norris Keeps Gaining on VerstappenLando Norris and Oscar Piastri are slotted ahead of 3-time United States Grand Prix winner Max Verstappen in the opening odds for this year's race.
Read more »
Top Fall 2024 / Winter 2025 Shoe Trends 2024 / 2025 » Fashion AllureLatest Fashion Trends, Shoes and Accessories, Celebrity Style
Read more »
Edmunds Compares: 2024 Honda Prologue versus 2024 Toyota bZ4X Electric SUVsHonda has a long reputation for building highly fuel-efficient cars and trucks, and now it’s getting serious about EVs with the all-new 2024 Prologue.
Read more »
Top Fall 2024 / Winter 2025 Bag Trends 2024 / 2025 » Fashion AllureLatest Fashion Trends, Shoes and Accessories, Celebrity Style
Read more »