Direxion Daily Semiconductors Bull 3x Shares (SOXL) soared 11.04% in pre-market trading on Tuesday, reflecting a strong bullish sentiment in the semiconductor sector. This significant move comes amid positive trends in tech stocks and notable options activity for SOXL and other semiconductor-related securities.
The surge in SOXL, a leveraged ETF that aims to deliver three times the daily performance of the ICE Semiconductor Index, appears to be driven by several factors. Notably, major semiconductor stocks like Nvidia (NVDA) have been showing strength, with NVDA rising 2.74% in pre-market after a 3.5% gain in the previous session. This positive momentum in the semiconductor industry is likely contributing to SOXL's impressive pre-market performance.
Options market activity also indicates strong bullish sentiment for SOXL. According to recent data, 73% of SOXL option trades on Monday were call options, suggesting investors are positioning for potential upside. Particularly high volume was observed for the $9 strike call option expiring that Friday, with 36,592 contracts traded. This options activity, combined with the overall positive trend in tech and semiconductor stocks, appears to be fueling investor optimism and contributing to SOXL's pre-market rally.
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