Eli Lilly Share Performance
With the NASDAQ pushing record highs, we see a growing sense of complacency in the market. The CBOE Volatility Index, or VIX, is trading near 13, a level of calm that history shows can precede sharp reversals. This suggests buying protective puts on the QQQ or SPY could be an inexpensive way to hedge against any sudden tariff announcements in the coming weeks.
The current belief is that chipmakers like Nvidia and AMD will be shielded from tariffs, which is driving their recovery. We should remember the volatility spikes of 2018 and 2019, where sudden tariff announcements caused the S&P 500 to drop over 5% in a single week. Recent data from the Semiconductor Industry Association shows a 15% year-over-year increase in capital expenditures for U.S.-based fabrication plants, reinforcing the market’s bet on the re-shoring trend that could provide this shield.
Apple And Intel Market Dynamics
Apple’s strength is notable, especially as its domestic smartphone market share recently hit 65%, supporting the view it will benefit from any pressure on foreign competitors. On the other hand, Intel’s political troubles make it a candidate for bearish put strategies or bear call spreads. This divergence shows how critical it is to focus on company-specific risks rather than just the broader sector.
