Best Options Strategy for ON
Looking for the best options strategy for ON Semiconductor (ON)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live ON option chain right now, and a simple map from your view on ON to the strategy that fits it. Model any of them in the calculator before you trade.
About ON
ON Semiconductor (ON) is a major company in power and automotive semiconductors. Options traders on ON tend to watch EV and industrial demand, the chip cycle and earnings, since these can drive large moves in the share price.
ON for options traders
ON Semiconductor designs power management and analog chips for electric vehicles, industrial automation, and energy infrastructure — markets that are inherently tied to long capital expenditure cycles. That exposure makes ON unusually reactive to macro signals: interest rate expectations, EV adoption narratives, and automotive production data can all reprice the stock well outside of earnings windows. The quarterly report itself is a high-stakes event, with options markets pricing a meaningful move as traders focus on EV platform design wins, inventory destocking commentary, and forward guidance on industrial end-markets.
Implied volatility on ON sits structurally higher than large-cap chip peers, reflecting both the cyclical end-market mix and the stock's history of sharp directional moves. Options liquidity is adequate for most single-leg and two-leg trades, with front-month and near-term quarterly contracts seeing the most activity. Traders who want binary earnings exposure often use straddles or short-dated vertical spreads to cap premium outlay. Between catalysts, the elevated IV makes short strangles and iron condors attractive for premium sellers willing to stay range-bound, while long-term holders regularly write covered calls to harvest premium over the duration of the semiconductor upcycle.
Today's top-scoring strategy for ON
Our engine ranks defined-risk strategies on the live ON chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.
| Action | Qty | Type | Strike | Premium |
|---|---|---|---|---|
| Buy | 1× | PUT | $55 | $0.11 |
| Sell | 1× | PUT | $75 | $5.03 |
| Sell | 1× | CALL | $75 | $3.83 |
| Buy | 1× | CALL | $95 | $0.38 |
Simulation
Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.
Strategy analysis
Greeks vs price
Price × volatility (today)
| −30% | −15% | IV | +15% | +30% | |
|---|---|---|---|---|---|
| $92 | −$649 | −$596 | −$560 | −$540 | −$531 |
| $89 | −$425 | −$407 | −$402 | −$409 | −$425 |
| $85 | −$183 | −$211 | −$245 | −$284 | −$326 |
| $81 | $39 | −$37 | −$111 | −$181 | −$246 |
| $78 | $190 | $79 | −$23 | −$115 | −$198 |
| $74 | $227 | $107 | −$4 | −$103 | −$191 |
| $70 | $128 | $29 | −$66 | −$155 | −$234 |
| $66 | −$91 | −$147 | −$207 | −$268 | −$327 |
| $63 | −$380 | −$388 | −$406 | −$431 | −$460 |
| $59 | −$675 | −$648 | −$629 | −$620 | −$620 |
| $55 | −$919 | −$874 | −$835 | −$804 | −$782 |
Live scan from 2026-08-21 · quotes delayed ~15 minutes
Historical backtest: how a Iron Butterfly on ON would have performed
We approximated a Iron Butterfly on ON, entered repeatedly over the past year (93 historical entries, each held to expiration) with Black-Scholes-modelled entry premiums. Here is how that would have played out on real ON price history — an educational backtest, not a prediction of future returns.
Approximate: entry premiums are modelled with Black-Scholes from trailing realised volatility, held to expiration and settled against the real historical close. Real fills, implied volatility and slippage differ — treat it as directional context, not exact returns.
Implied volatility
ON is currently trading with elevated implied volatility, so its options carry richer premiums. On the options we scanned that was around 53% implied volatility, and higher implied volatility means richer premiums and wider expected moves.
Options on ON currently price in about 53% implied volatility, versus roughly 54% the stock has actually realised over the past month. The two are roughly in line, so neither buying nor selling premium has a clear volatility edge here.
ON's IV Rank is 0/100: implied volatility sits 0% of the way between its 24-day low (53%) and high (97%), and is above 4% of recorded days. Premium is historically cheap, which favours net-debit strategies like long options and debit spreads.
Off that volatility, the options market is pricing a move of about ±$10.76 (±15%) in ON by 2026-09-18 — a range of roughly $63.12 to $84.64. Strikes inside that band hold most of the premium and see most of the action.
Across strikes, puts and calls on ON carry a fairly symmetric implied volatility — no strong directional fear is priced in either way.
ON options chain highlights: open interest, volume and skew
The live ON options chain shows a put/call open-interest ratio of 0.76 (bullish-leaning (more calls)), with at-the-money implied volatility near 52.6%. Open interest clusters at the $85 call — a common resistance "wall" — and the $70 put, a support "wall": the strikes option writers are most exposed to into expiration.
Snapshot of open interest, volume and implied volatility for the nearest scanned expiration — context, not a trading signal.
ON insider trading activity (SEC Form 4)
Open-market insider transactions at ON over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Thad Trent | Sell | 30,000 | $3.0M | 2026-04-24 |
| Thad Trent | Sell | 30,000 | $2.8M | 2026-04-23 |
| Thad Trent | Sell | 30,000 | $2.4M | 2026-04-16 |
| GOPALSWAMY SUDHIR | Sell | 6,114 | $359K | 2026-03-13 |
Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.
Liquidity and tradeability
ON options are deeply traded, with tight bid-ask spreads around 5.7% near the money — fills are cheap, so the full range of strategies, including multi-leg spreads and iron condors, is practical.
Earnings & IV crush
ON's next earnings report is due around November 2, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.
Key figures
- Market cap
- $32.5B
- Beta (vs market)
- 2.02
- 52-week range
- $44.56–$134.92 (32% up the range)
- Short interest
- 10.9% of float · 3.0 days to cover
With 10.9% of ON's float sold short, squeeze and gap risk are elevated — one reason its options can stay expensive.
Other strong setups for ON
If your view on ON differs, these also scored well in the latest scan:
How to choose an options strategy for ON
Start with your outlook on ON, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:
Bullish
Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.
Long Call → Bull Call Spread →Bearish
Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.
Long Put → Bear Put Spread →Neutral
Sell an iron condor to collect premium while ON stays between two strikes, or write a covered call against shares you already own.
Iron Condor → Covered Call →⧉ Embed this free calculator on your site →
How we pick the best strategy
For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →
Open ON in the free calculator →
Frequently asked questions
What is the best options strategy for ON?
It depends on your outlook. Bullish traders often use a long call or bull call spread on ON; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.
Are ON options liquid enough to trade?
ON Semiconductor (ON) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.
How much money do I need to trade ON options?
Buying a single ON call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.
Is this financial advice?
No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade ON or any security. Do your own research.
What does ON Semiconductor do?
ON Semiconductor (ON) operates in the Semiconductors industry. The "About ON Semiconductor" section above gives a fuller picture of what the company does and how it earns money.
Does ON Semiconductor pay a dividend?
We don't show a confirmed dividend yield for ON Semiconductor here, so treat it as uncertain: before writing calls, check its current dividend and ex-dividend date with your broker — an approaching ex-dividend date can trigger early assignment on in-the-money short calls.
When does ON Semiconductor next report earnings?
ON Semiconductor's next earnings are expected around November 2, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.
Price trend
Tickers related to ON
Comparing ON with similar names can help you choose the best options strategy:
Company information
- Headquarters
- 5701 North Pima Road, Scottsdale, AZ, 85250, United States
- Industry
- Semiconductors
- Employees
- 22,600
- CEO
- Mr. Hassane S. El-Khoury
- Phone
- 602 244 6600
- Website
- www.onsemi.com
- Investor relations
- www.onsemi.com/PowerSolutions/content.do?id=1116
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Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy · Terms.