Data suggest SMH near-term puts are bargains relative to the comparable bullish calls.
“Whatever the reason, short-term puts are currently more attractively priced compared to their call counterparts. The fund’s 30-day implied volatility skew of 25.7% ranks in the 25th annual percentile,” notes Schaeffer’s.
Aggressive traders looking to play a June slump in semiconductor stocks can consider the Direxion Daily Semiconductors Bear 3x Shares (NYSEArca: SOXS). SOXS attempts to deliver triple the daily inverse returns of the PHLX Semiconductor Index.
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