Semiconductor stocks are taking another hit today, as investors assess the potential implications of Democrats' sweeping midterm election victories for U.S. trade and chip policies. The iShares Semiconductor ETF (NASDAQ:SOXX) and iShares MSCI Taiwan ETF (NYSEARCA:EWT) are both seeing elevated options activity, with traders taking a bearish stance as shares tumble.
SOXX was down 11.8% to trade at $132.43 at last check, with options volume running at 2.1 times the usual intraday pace. So far, 131,343 contracts have changed hands, compared to the average of 67,532. Traders are leaning bearish, with negative net option delta volume equivalent to roughly 460,000 shares.
EWT, which offers exposure to Taiwan's semiconductor-heavy stock market, was last seen down 10.4% to trade at $86.98. Options volume is running at three times the typical intraday amount, with 17,172 contracts exchanged so far. Sentiment is similarly pessimistic, with negative net option delta volume of roughly 68,000 shares.
