Wolf Speed semiconductor reported after hours today and guided below consensus for q4 estimates. Their cut for estimates potentially ends their 50% year-over-year growth prospects for the coming quarters. Their rival ON Semi will report on October, 31st. ON semi has been one of the best-performing semiconductor stocks of the year only falling a mere 3.5%. Wolf Speed was relatively outperforming as well until falling over 26% after hours today. Both these companies are heavily specialized in the automotive industry for EVs and have enjoyed high demand. But now it seems the industry is starting to show cracks after Wolf Speed's cut. The most interesting phenomenon about On Semi is the OTM puts for January 20, 2023, which show over 17,000 bought for the strike of 30$ and 15,000 bought for the strike of $50.
No one knows for certain about the future of these 2 companies but there is a serious risk of ON Semi-being butchered for cutting guidance.
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