IGV Jumps 5% as Traders Buy 50,000 Calls on Software Rally
Updated
Updated · CNBC · May 29
IGV Jumps 5% as Traders Buy 50,000 Calls on Software Rally
2 articles · Updated · CNBC · May 29
IGV climbed 5% Friday and has surged 35% from its April low, extending a software-stock rebound into what traders now treat as a fresh bull run.
ServiceNow and Workday posted double-digit gains that powered the ETF higher, while call buying in Salesforce and Oracle also ran about 5-to-1 over puts.
Options activity in IGV topped 5 times its 30-day average, with more than 50,000 calls bought versus just under 6,000 puts.
SpotGamma data showed $140 million in IGV option premium traded by midday, including $120 million in calls—more than in semiconductor ETF SMH options.
Some traders still hedged through spreads and sold December 90-strike calls, but the heavy bullish flow reflects a broader bet that software will keep outperforming semiconductors.
Is the software sector's extreme bullishness a sign of strength or the calm before a market storm?
As investors dump chips for software, is this the start of a new tech hierarchy led by AI applications?
Software giants promise an AI future, but can their current strategies translate into sustainable, long-term profits?