Equity Trade Update: $ON Closing Option Trade +8%

Negative Short Term Reversal & Trend Exhaustion signals

We posted this idea on 16th July and we hit target 1 today on 24th but stock took a bounce since then.

With expiry looming we are going to close our option trade at $4.50 for a small profit of 8%.

We didn’t get the push towards target 2 that we expected.

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We had a negative Reversal signal and a Trend exhaustion signal in ON Semiconductor at the close last night

This trade idea focuses on a straightforward bearish setup on ON Semiconductor ($ON), using a long put strategy to position for further downside into early August.

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Trade Setup

• Buy ON $62 put

• Net debit (cost): approx. $4.20

• Max profit: Unlimited down to $0

• Max loss: $4.20 (premium paid)

• Break-even: $57.80 (62 - 4.20)

• Expiration: August 1st

• Current reference price: $58.76

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Target Levels

• Target 1: $56.41

• Target 2: $54.18

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Risk/Reward
Max Risk: Limited to premium paid ($4.20)
Reward Potential: High — profit grows as ON trades lower, breakeven at $57.80

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📊 Payoff Diagram

Below is the payoff chart for this debit put spread, highlighting:

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