Investors saw SMH stock price testing the $230 resistance today, a level last touched during January highs. A breakout could open room toward the $235–$238 zone. As readers will note above, SMH has a massive 20.1% position in shares of Nvidia (NVDA) . However, this large position has served it well, as Nvidia stock has risen nearly 200% in the past year. The put contract at the $198.00 strike price has a current bid of $12.75. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $198.00, but will also collect the premium, putting the cost basis of the shares at $185.25 (before broker commissions). To an investor already interested in purchasing shares of SMH, that could represent an attractive alternative to paying $200.32/share today. SMH stock price activity reflects strong correlation with Nvidia and AMD moves. Any surprises in their quarterly reports are likely to ripple directly through SMH performance.
