Equity Trade Update: $ON Target 1 hit

Negative Short Term Reversal & Trend Exhaustion signals

We posted this idea on 16th July and we hit target 1 today with ON 0.00%↑ trading down almost 7% at the open. Target 1 was $56.41 and the stock is currently trading around $55 (down 6.4% from our reference price). Next Target is $54.18.

The options idea is currently 72% in the money.

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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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Disclaimer:
The trade ideas and commentary shared on this page are provided for educational and informational purposes only. They do not constitute financial advice, investment recommendations, or an offer or solicitation to buy or sell any securities. All content reflects the opinions of the authors and is subject to change without notice. QM Trades does not provide personalized investment advice and is not a registered investment advisor or broker-dealer. Always do your own research and consult with a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results. Trading and investing in financial markets involve risk, including the potential loss of capital.