Options Traders Are All Over This Struggling Chip Stock

Core Insights - Wolfspeed Inc (NYSE:WOLF) experienced a significant stock decline of 18.2%, closing at $26.16, following a disappointing fiscal first-quarter revenue report and a bleak fiscal second-quarter revenue outlook [1] - The company has seen a predominance of put options traded, with 7,963,705 puts compared to only 18,103 calls over the last 10 days, indicating bearish sentiment among traders [2] Trading Activity - In the last 10 days, Wolfspeed's options trading volume was notably high, with a total of 7,981,808 contracts, primarily driven by put options [3] - A specific instance included the sale of a block of 120,000 weekly 10/25 2.50-strike puts, suggesting a strategy to capitalize on further declines [2] Market Context - The stock's trading history shows volatility, having reopened at $18 on September 30 and reaching a high of $36.53 by October 9, before declining again [3] - The put/call volume ratio for Wolfspeed stands at 4.97 over the past 50 days, reflecting a strong preference for puts among options traders [5]