Direxion Daily Semiconductors Bull 3x Shares (SOXL) is showing signs of a strong recovery in pre-market trading on Wednesday, soaring 10.91% after a significant drop the previous day. This dramatic turnaround comes amidst a volatile market environment and high options activity for the leveraged ETF.

On Tuesday, SOXL had plummeted nearly 10% as the broader market, particularly the technology and semiconductor sectors, faced heavy selling pressure. The S&P 500 had closed below 5,000 points for the first time in almost a year, reflecting widespread investor concerns. However, the pre-market surge suggests a potential shift in sentiment, especially for semiconductor-related stocks.

Options market data from Tuesday showed considerable interest in SOXL, with 607,900 contracts traded. Notably, call options accounted for 68% of the overall option trades, indicating bullish speculation. The high volume for the $15 strike call option expiring April 11 further supports the notion that some traders were positioning for a potential rebound. This optimism appears to be materializing in Wednesday's pre-market session, as SOXL leads a potential recovery in the semiconductor space.