Traders flood AI chip options with calls after Fed raises rates

After the Federal Reserve moved its benchmark rate to a 3.75-4% range, markets rebounded on Thursday and options traders surged into bullish positions on AI-focused semiconductor firms. Intel led the activity, with options volume reaching about 1.3 million contracts—close to three times its typical monthly level—and generating $231 million in call premiums. Advanced Micro Devices saw volume nearly twice its norm, highlighted by a sizable November-call spread that would need the stock to exceed $615 to become profitable.

Cybersecurity company CrowdStrike attracted interest in low-strike calls, and SpaceX options amassed over $1.5 billion in premium, largely from large put sellers offering downside protection. Across the board, at-the-money calls were priced roughly $2 higher than comparable puts, signaling strong investor optimism despite tighter monetary policy.