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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.