What Happens When You Add Triple Leverage to Bearish Bets...

OptionsDelta
10-23 22:45

$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$

Thursday's crash sent SOXL options opening data through the roof. Bears went all-in bearish — both call and put opens were bearish orders, including big same-day-expiry trades. For example:

Sell $SOXL 20261120 120.0 CALL$  — 29K contracts opened
Sell $SOXL 20261023 85.0 CALL$  — 20K contracts opened
Buy $SOXL 20261023 80.0 PUT$ — 30K contracts opened
Buy$SOXL 20290119 55.0 PUT$  — 8,428 contracts opened

Big SOXL orders aren't that common. With a 3x leveraged ETF plus options leverage on top, you could say bears think Friday is a guaranteed drop.

We'll see at tonight's close. At least as of one hour after the open, those two same-day-expiry big orders can be considered worthless.

$SPDR S&P 500 ETF Trust(SPY)$

Even though semis may have hit a short-term bottom, the worrying part is that SPY has entered a pullback trend, with a target of 740. Unless another massive short-squeeze miracle turns things around, SPY falling will definitely drag semis into a deeper pullback.

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