The Energy Play in Semiconductors
By Brandon Chapman, CMT
Hey trader,
The semiconductor supply chain has a vulnerability that almost nobody is watching.
Traders are focused on oil prices and airlines when they think about the Persian Gulf conflict.
The second-order effect matters more.
Taiwan manufactures the processors that power Nvidia, Apple, and AMD. Those factories run on liquefied natural gas.
And Taiwan has 11 days of supply!
Would I have realized this without the Block Hunter Console? Probably not.
The Block Hunter Console flagged 10,000 put contracts on Micron in one print today.
A separate put spread in SMH printed in the same session, buying the $325 puts and selling the $275 puts.
On the other side, nearly 3,000 call contracts landed on Taiwan Semiconductor for this week's expiration.
This tickled my brain enough to dive into the issue.
And what I found could be the hidden trade that no one has seen yet.
Click Here to Continue reading.
The Persian Gulf conflict has a supply chain problem that goes well beyond oil prices.
Taiwan Semiconductor manufactures the processors for Nvidia, Apple, and AMD. The Block Hunter Console caught institutional desks building opposing positions across the semiconductor sector in a single session.
The hedging side is significant. So is the resolution bet. The size of those prints tells you how much capital is riding on the outcome.
The Console lit up opportunities on KSS (375% in 13 days), PLUG (206% in 5 days), and VFC (100% in just 24 hours).
See the Console in action and learn how institutional flow detection works.
Disclaimer: Neither TheoTrade or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, registered investment adviser, registered broker-dealer or FINRA|SIPC|NFA-member firm. TheoTrade does not provide investment or financial advice or make investment recommendations. TheoTrade is not in the business of transacting trades, nor does TheoTrade agree to direct your brokerage accounts or give trading advice tailored to your particular situation. Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction or investment.Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past Performance is not necessarily indicative of future results.
0 Response to "The Energy Play in Semiconductors"
Post a Comment