Investors' favorite trade is suddenly the one they can't stop betting against.

Micron surged 10% Monday after Friday's $1.3T chip rout. But put options on the semiconductor ETF hit an all-time high as traders hedge the AI trade's volatility.

Chip stocks are bounding back Monday, but the rebound doesn't mean tech investors are in the clear, according to Mike Khouw.

Despite the overall bearish sentiment on the cohort, traders put a few bullish bets on potential semiconductor winners.

Investors' favorite trade is suddenly the one they can't stop betting against.