Semiconductor stocks dropped sharply last week over escalating concerns regarding the trade war with China—Here is one way to protect your portfolio.
With China being a major exporter of components and assembled goods, chip companies do not want to see the battle of tariffs continue. The best way to protect a portfolio with heavy exposure to semiconductors is to buy put spreads in a semiconductor exchange traded funds such as Market Vectors Semiconductor ETF (SMH). With SMH dropping, there were several put spreads executed in SMH options, often in large blocks.
