Begun the trade wars have. U.S. stock futures are careening lower this morning. President Donald Trump threatened $400 billion in more tariffs on China yesterday.

President Trump reportedly asked U.S. trade representative Robert Lighthizer to identify $200 billion more in Chinese products to target for 10% tariffs and threatened to find $200 billion more if China retaliated. China’s Ministry of Commerce said the country would take comprehensive measures in response.

The quick escalation in rhetoric has Dow Jones Industrial Average futures plunging 1.38% this morning. Meanwhile, S&P 500 futures have dropped 1.01% and Nasdaq-100 futures are down 1.25%.

In options activity, volume was anemic on Monday. Only about 17.7 million calls and 13.1 million puts changed hands on the session. On the CBOE, the single-session equity put/call volume plunged to 0.54. The 10-day moving average, meanwhile, held at 0.54 — its lowest point since January.

Options traders took aim at the semiconductor industry yesterday. Analysts at Cowen praised Advanced Micro Devices, Inc. (NASDAQ:AMD) while Northland Capital Markets downgraded Intel Corporation (NASDAQ:INTC). Both cited AMD’s rising market presence. Elsewhere, Tesla Inc (NASDAQ:TSLA) options volume spiked after CEO Elon Musk once again took aim at short sellers.

Let’s take a closer look:

Advanced Micro Devices, Inc. (AMD)

AMD hit a fresh 52-week high on Monday after Cowen lifted its target on the shares to $21 from $18. The ratings firm cited cloud computing opportunities based on AMD’s coming 7 nanometer (nm) chipset.

The new Radeon Vega GPU and second generation Ryzen Threadripper are both expected to feature 7nm tech and arrive months ahead of Intel’s 10nm competitor chips.

“Along with recent announcements of new server deals with Cisco CSCO/Tencent TCEHY and the crystallization of our 7nm AMD versus 10nm Intel thesis, we are increasingly confident in upside to AMD shares,” Cowen said in a note to clients.

AMD options traders cheered the news as well, piling into call options. Volume surged to 470,000 contracts, with calls making up 67% of the day’s take.

However, most short-term AMD options traders are calling for a reversal. Specifically, the July put/call open interest ratio has ballooned to a reading of 1.49, with puts easily outnumbering calls among front-month options. With AMD trading deep in overbought territory, these options bears may be onto something.

Intel Corporation (INTC)

Along the same lines, Northland Capital Markets said that “Intel’s process technology leadership is diminished if not evaporated.” The ratings firm downgraded INTC stock to “underperform” from “outperform” citing AMD’s coming 7nm and 14nm processor lines.

Specifically, these lower-powered chips would finally allow AMD to pose significant competition to Intel in the notebook PC market — one in which AMD has yet to make serious headway.

INTC stock options traders rushed to take profits following the downgrade. Volume rose to 179,000 contracts, with calls making up 60% of the day’s take. Profit taking among Intel options traders was evident as its July put/call OI ratio rose to 0.83 from a reading below 0.80 late last week.

Tesla Inc (TSLA)

Tesla CEO Elon Musk once again took aim at short sellers over the weekend. On Sunday, Musk tweeted that short sellers “have about three weeks before their short position explodes.” In about three weeks, Tesla is expected to provide a production update on the Model 3, with many analysts believing the company will finally hit its production goal of 5,000 vehicles a week.

TSLA options traders were surprisingly call heavy for a change. Volume rose to 328,000 contracts on Monday, with calls snapping up 63% of the day’s take — well above the norm for the typically dour TSLA options backdrop.

Speaking of “typically dour,” Tesla’s July put/call OI ratio comes in at 1.20, indicating that short-term traders remain largely bearish on the shares. Don’t expect this to change with the current trade war fears swirling around, but if Tesla hit’s its production targets in three week’s, Musk’s prediction could well come true.

As of this writing, Joseph Hargett held no positions on any of the aforementioned securities.