Software stocks are crashing up. Here are the winners
Software stocks are experiencing a significant rally, with the iShares Expanded Tech-Software ETF (IGV) rising 35% since April. Traders are increasingly optimistic, as evidenced by a surge in bullish options trading on the ETF. Despite the gains, some traders are hedging their positions with call spreads.
- ▪The iShares Expanded Tech-Software ETF (IGV) is up 35% from its April low.
- ▪Options traders are heavily favoring bullish positions on the ETF, with trading volumes exceeding five times the daily average.
- ▪More than 50,000 call options on IGV were bought in a single session, compared to just under 6,000 puts.
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The rally in software stocks has gone from recovery to raging bull market, and traders are betting there's more to come.The iShares Expanded Tech-Software ETF (IGV) is up 35% from its April low after a 5% rally Friday on the back of double-digit percentage gains in ServiceNow and Workday. Options traders are piling into bullish positions on the ETF, where trading is more than 5x the daily average of the past 30 days and call volumes outpace puts four-to-one.Traders bought more than 50,000 calls on IGV in Friday's session, compared to just under 6,000 puts.
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