I’m still bullish on AI over the next several years. Semis, memory stocks, the whole complex — I think we’re in a long-term bull trend.

But right now, we’ve hit some major overbought levels across the sector. IV and skew ranks on AI stocks are sitting in the 95th to 99th percentile. Traders are piling into calls over puts at a historic rate, and implied volatility is at some of the highest readings of the past year. When everyone’s in the same trade, leverage builds — and so does vulnerability.

I’m targeting two tickers that look ripe for a pullback: one is a South Korean ETF that’s been swept up in the AI mania, and the other is a leveraged semiconductor ETF that just ripped 471% before selling off 35% in two weeks.

Here’s how I’m trading both — and what levels I’m watching.

I’m still bullish on AI over the next several years. Semis, memory stocks, the whole complex — I think we’re in a long-term bull trend.

But right now, we’ve hit some major overbought levels across the sector. IV and skew ranks on AI stocks are sitting in the 95th to 99th percentile. Traders are piling into calls over puts at a historic rate, and implied volatility is at some of the highest readings of the past year. When everyone’s in the same trade, leverage builds — and so does vulnerability.

I’m targeting two tickers that look ripe for a pullback: one is a South Korean ETF that’s been swept up in the AI mania, and the other is a leveraged semiconductor ETF that just ripped 471% before selling off 35% in two weeks.

Here’s what I’m seeing — and how I’m trading each.

#1: iShares MSCI South Korea ETF (NYSE:EWY)

If you’ve been watching the KOSPI — South Korea’s main index — you know the run has been extraordinary: up 98% year-to-date. But here’s why it matters for AI traders: the index is roughly 50% weighted to Samsung and SK Hynix, two of the largest semiconductor companies in the world. As profit-taking hit those two names, the entire index came with them. The KOSPI is now 12.3% off its all-time highs, bringing year-to-date gains down to 83%.

I think the first wave of selling is done. But I also think there’s another wave coming — a combination of continued profit-taking and outright bearish positioning — especially if the KOSPI loses the 7,000 support level.

My trade: selling rallies in EWY, or buying puts/put spreads, targeting a break of $176 support and a medium-term move toward $165 by July/August.

On the positioning side, $185 is the BBP (Bull/Bear Pivot) — below that level, puts are in control. $180 is a key level, but if EWY breaks below it, the next major support is $165, which is the TPS (Top Put Strike). There’s plenty of room to the downside if the KOSPI breaks lower.

#2: Direxion Daily Semiconductors Bull 3x ETF (NYSE:SOXL)

SOXL had one of the most extraordinary runs of 2026, ripping 471% in just a few weeks.

Then reality hit. The ETF has since sold off 35% over two weeks. It’s taking a pause now — but I think there’s more medium-term selling ahead.

Looking at our GammaLens tool, positioning at current prices around $185 shows puts firmly in control from $200 down — gold bars dominating the blue. Key support levels sit at $180 and $170 to the downside, where the TPS and TGS converge.

My trade: buying OTM put spreads targeting $170 for the July or August expiry, looking for small rallies to establish bearish positions at better prices.

Want to see exactly how I’m sizing and structuring these trades in real time? I’m live every Monday through Friday, 9am–2pm EST in the Benzinga Options School, covering EWY, SOXL, and the AI tickers moving heavily every day.