Last week semiconductor bellwethers, Samsung and AMD, posted weaker than expected results, dragging European semiconductor stocks lower, and pushing implied volatilities higher. Add to this, the latest news on export restrictions to China imposed by the US, and things have started to look positively gloomy for the sector.
However, glass-half-full people will see this as new already priced in by now. Despite that, ASML implied volatility is trading at the very upper edge of the 12-month volatility cone. Click through for our recommended trade.