Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a remarkable surge of 14.37% during Tuesday's trading session, building on its strong pre-market performance. This significant move reflects a broader rally in the semiconductor sector and highlights the amplified effect of SOXL's leveraged structure.

The impressive gain can be attributed to several factors driving bullish sentiment in the semiconductor industry. Nvidia (NVDA), a bellwether for the sector, saw its stock rise 2.74% in pre-market trading after a 3.5% gain in the previous session. This positive momentum, combined with optimism surrounding artificial intelligence and exempt status from certain tariffs, has created a favorable environment for semiconductor stocks.

Options market activity also played a crucial role in SOXL's surge. On Monday, 73% of SOXL option trades were call options, indicating strong bullish positioning among investors. Particularly high volume was observed for the $9 strike call option expiring on Friday, with 36,592 contracts traded. This options activity suggests that traders are anticipating further upside potential in the short term.

As a leveraged ETF designed to deliver three times the daily performance of the ICE Semiconductor Index, SOXL's 14.37% gain reflects the amplified impact of the sector's positive trends. Investors should note that while leveraged ETFs can provide significant returns during favorable market conditions, they also carry higher risks and are typically used for short-term trading strategies.