The VanEck Semiconductor ETF (SMH) is among the most useful proxies for gauging broader market conditions and risk appetite.
It’s been trading in a tight range so far in 2026—separated by roughly $40—leaving many traders uncertain over what the next big move could look like.
Will it continue its uptrend…?
Or is there an anticipated reversal in the works?
Scott Bauer discussed the SMH ETF with Oliver Renick on the Chicago Future of Finance Podcast earlier this week.
Instead of being bullish or bearish, Scott shared what he calls a “sideways” strategy he would consider for trading the ETF.
The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.
Scott covers:
- Why he believes this strategy is ideal for traders who are uncertain about direction
- How it can leverage expensive premium in the SMH ETF
- Two price points in the SMH ETF to consider for playing upside and downside moves
- Being able to take in hefty credits with this strategy, while defining risk
- His response to options traders who don’t understand how this strategy works
