SOXX Put Buying Hits 74,468 Contracts as Semiconductor Volatility Doubles in 2026
Updated
Updated · CNBC · Jun 24
SOXX Put Buying Hits 74,468 Contracts as Semiconductor Volatility Doubles in 2026
3 articles · Updated · CNBC · Jun 24
Summary
SOXX put volume reached 74,468 contracts on Tuesday, about 1.5 times its 20-day average, signaling a sharp rise in demand for downside protection.
Volatility has doubled in the semiconductor sector since the start of 2026, even as chip shares have surged more than 300% from 2025 lows to this month's highs.
The latest warning signs are showing up in market swings: South Korea's KOSPI—seen as a proxy for the global hardware and memory chain—has logged at least three drawdowns of more than 10% this year, including one near 20%.
Traders are favoring put spreads over outright puts because single-leg hedges are costly at current volatility; an August 570/450 SOXX put spread costs just over $31, roughly 5% of the ETF, with about a 3-to-1 payoff.