A hedge that pays off if the chip stock comeback isn't for real

Nishant Pant looks at a bearish options trade on Broadcom into the Fed decision.

Despite taking a beating in the latter part of August, most chip stocks have staged an impressive relief rally so far. But the rally appears to be losing steam as many of these stocks are exhibiting a similar chart pattern where they are facing pressure near a previous resistance zone. I am basing this trade on the age-old concepts of support and resistance zones.

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