Market Overview

Dan Nathan's Bearish Semiconductor ETF Trade

Share:
Related SMH
Not All Chip ETFs Are Bleeding Assets
Some Key Funds May Be On The Precipice
Applied Materials Earnings Preview: Can The Report Stop The Bleeding? (Seeking Alpha)

Dan Nathan spoke on CNBC's "Options Action" about VanEck Vectors Semiconductor ETF (NYSE: SMH). The semiconductor stock could trade lower into the year end, said Nathan.

He suggested a bearish options strategy to make money in case of a potential move lower. Nathan wants to buy the January 102/90 put spread for a total cost of $3. The trade breaks even at $99 or 3.83 percent below the current market price and it can maximally make a profit of $9.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media ETFs

 

Related Articles (SMH)

View Comments and Join the Discussion!

30 Stocks Moving In Monday's Pre-Market Session

Carter Worth And Mike Khouw's Macy's Trade