When OpenAI said it missed its revenue and user goals, the news shook the market. The surprise makes the big $600 billion AI‑infrastructure spending plan look shaky. When the story changes fast, semiconductor stocks feel the first hit.
The whole sector may drop quickly, but two companies stand out as the cheapest places to buy put options for a short trade with low risk.
Trade 1 – Lam Research (LRCX) Exhaustion Break
The chart shows Lam Research losing steam after a big run‑up. Momentum has stopped and the MACD line is turning down, which often leads to a sharp pull‑back.
- Strategy: Long Put
- Expiry: May 29, 2026 (30 days)
- Strike: $255 Put
- Cost: $20.00 per contract
- Score: 103
Trade 2 – ON Semiconductor (ON) Over‑Extended Pull‑Back
ON Semiconductor has almost doubled in the last month. Such a steep climb is fragile and can fall fast when the market wobbles. The technical picture shows the stock ready to drop back into the $70s.
- Strategy: Long Put
- Expiry: May 29, 2026 (30 days)
- Strike: $94 Put
- Cost: $7.60 per contract
- Score: 102
How the Trades Were Found
These two setups did not take hours of hand‑picking. A quick scan of the S&P 500 semiconductor list gave a short list of 19 tickers. The list was fed into an options‑analysis tool that filtered for “Long Put” strategies and only showed liquid contracts.
The tool instantly ranked the stocks by the cheapest put price and highlighted the best candidates. Lam Research and ON Semiconductor rose to the top, letting us lock in the trades in under a minute.
Step‑by‑Step Workflow
- Screen for Semiconductors: Use a chart screener to pull all semiconductor companies in the S&P 500.
- Select Strategy: Choose “Long Put” because we expect a quick downside after the AI news.
- Run the Tool: The software calculates Greeks, checks liquidity, avoids earnings dates, and ranks the cheapest puts.
This process removes the frustration of digging through dozens of charts and options chains. It gives a clear, math‑backed trade idea without mental fatigue.
Why This Matters
Finding a solid short put trade can take many hours of research. Automating the scan saves time and keeps the mind fresh, which is crucial for good decision‑making.
By using a systematic, data‑driven approach, traders can spot cheap, low‑risk semiconductor puts whenever market news creates a potential shake‑up.
Source: Materials provided by https://articles.stockcharts.com.Note: Content may be edited for style and length.