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Embattled ASML Stock Extends Steep Selloff

ASML put traders are coming out of the woodwork today

Managing Editor
Oct 16, 2024 at 10:13 AM
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It's been a week to forget for ASML Holding NV (NASDAQ:ASML). The Dutch-based semiconductor stock is down 4% to trade at $730.30 today, extending its 16.3% selloff yesterday after the company's accidentally-released early third-quarter results showed a sharp drop in orders. ASML also trimmed its 2025 full-year guidance, prompting three price-target cuts from overseas brokerages. 

ASML breached its year-to-date breakeven level yesterday, and is now heading for its lowest close since January.  Since a July 11 all-time high of $1,108.05, the stock has taken a 37.2% haircut, aided by post-earnings bear gaps of 7.1% in April and 12.7% in July. Year-over-year though, the shares are still up 15%. 

Options traders are all in on calls. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 18,088 calls in the past two weeks, compared to 8,683 puts. The resultant 10-day call/put volume ratio ranks in middling 74th percentile of its annual range, indicating the rate of put buying has tapered off.

Today, the scales tip toward puts. At last check, over 13,000 puts have changed hands, volume that's 17 times the average intraday amount. The October 650 put is the most popular, as is the 700-strike in the same series. 

 

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