Chip Stock Moves Higher Despite Dismal Outlook

ON Semiconductor Corp (NASDAQ:ON) stock is up 2% to trade at $72.64 at last glance, reversing premarket losses after the company reported better-than-expected earnings and revenue for the third quarter. A disappointing outlook for the fourth quarter is keeping the equity's gains in check, however.

The $66 level has acted as a floor for ON Semiconductor stock several times since April, and is coming back into play today. Meanwhile, the 200-day moving average is enacting pressure. Shares are now pacing for their fourth-straight daily gain, and just snapped a three-week losing streak, but still carry a 13.7% year-to-date deficit.

Options volume is running at 10 times the intraday average volume so far today, with 13,000 calls and 19,000 puts exchanged so far. The most active contract by far is the weekly 12/6 58-strike put.

Short-term options traders have been overwhelmingly bearish. This is per ON's Schaeffer's put/call open interest ratio (SOIR) of 2.45 that stands in the 98th percentile of reading from the past 12 months. Plus, the 23.85 million shares sold short make up 5.6% of the stock's available float.