Pedestrians stroll exterior Salesforce Tower on Feb. 25, 2026 in San Francisco, California.
Benjamin Fanjoy | Getty Pictures
Might the software program’s lengthy nationwide nightmare be over?
As semiconductor shares dragged down the Nasdaq-100 for a second day, quietly, software program shares seem to have discovered their groove.
Shares of the iShares Expanded Tech-Software program Sector ETF (IGV) climbed greater than 1% Monday, including to a more-than 20% advance off April lows and buying and selling on the highest since January. For a lot of, that is sufficient to name it a bull market.
Choices merchants are leaning into it, promoting virtually 28,000 places on the ETF in Monday’s session, a bullish place that displays a view that the worst is previous. The variety of calls purchased additionally outnumbered the variety of places purchased. When merchants promote a put, they’re making a reasonably bullish guess. They’re obligated to purchase the underlying inventory at that put’s strike value in change for the collected premium.
iShares Expanded Tech-Software program Sector ETF (IGV), YTD
However merchants are making extra outright bullish performs.
In one of many greatest choices trades of the day, a dealer spent $32 million shopping for 7,000 of the in-the-money 390-strike Microsoft calls expiring Aug. 21. Eight of the highest 10 choices trades in that inventory have been call-buyers.
Serving to invigorate optimism Monday was a report from Financial institution of America analyst Tal Liani who reinstated protection of ServiceNow with a purchase score and $130 value goal. Shares popped 9% and choices merchants pounced, scooping up greater than 85,000 calls within the inventory and buying and selling 5 occasions extra calls than places.
Even beleaguered Salesforce, which the BofA workforce labeled “underperformed” managed a 3.5% bounce and noticed calls outpace places three-to-one.
Whereas a lot of the class continues to be buying and selling effectively off final 12 months’s highs, there’s at the very least one categorical exception: cybersecurity. Amplify’s cybersecurity ETF “HACK” is up 16% since April 20, together with a 3% rally Monday, as shares like CrowdStrike and Palo Alto Networks commerce at all-time highs.
Software program shares have been crushed in 2026 on fears of a so-called SaaSpocalypse, or the worry that AI brokers will substitute software program firms. Even with the latest rally, the IGV is down 12% on the 12 months.
