ON is trading at 10-month lows
ON Semiconductor Inc (NASDAQ:ON) is plummeting today, despite the company's upbeat third-quarter results, after the chip giant announced 900 job cuts and a weak fiscal fourth-quarter forecast on slowing electric vehicle (EV) demand. Plus, Craig-Hallum downgraded the stock to "hold" from "buy," and slashed its price target all the way down to $78 from $132.
Options traders are blasting ON after the event. So far, 50,000 calls and 42,000 puts have been exchanged, which is already nine times the average daily options volume. The January 2024 60-strike call is the most popular contact, with new positions being opened at the December 75 call.
ON is down 20.5% to trade at a 10-month low of $66.42 at last glance. This drop has the security gapping below its 320-day moving average, which supported several pullbacks over the past year. Since the start of 2023, the equity is still up 6.7%.
