It will be interesting to see how options traders play the current situation in semiconductors, as volatility related to earnings and deteriorating fundamentals in the sector has clearly emerged. This said, trading opportunities may indeed be present for the nimble, and Direxion offers two triple leveraged products SOXL (Direxion Daily Semiconductor Bull 3X) and SOXS (Direxion Daily Semiconductor Bear 3X).
Both products are geared to the PHLX Semiconductor Index, the same index that SOXX tracks, and are designed to deliver three times the daily long and inverse returns respectively to the index. With a number of semi names still slated to release quarterly earnings in the near term, we would expect to see higher trading activity in these products to continue as investment managers play both the “bull” and “bear” side of the trade with these funds.
Direxion Daily Semiconductor Bear 3X
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