I was asked for my favorite leveraged option play would be to the downside, so here it goes: SOXS - Direxion Daily Semiconductor BEAR 3X. SOXS Note that are no trend lines, trend channels, EW counts or any other pattern recognition analysis on this SOXS chart. Because, there are none, not yet, just a few examples of how fast this index can rise when semicondoctor stocks take a hit. This is a simple play on Nasdaq in general and Semiconductors in particular, led by NVDA, AMD and MU, this index's three top holdings, giving back yesterday's gains at some point in the next 36 days. That would take the index from its current price of $26.15 to at least fill the gap created by the "Cease Fire" news, at $33.43, Tuesday's close. Best case scenario sends SOXS much higher, to challenge the March 30th high print of $49.76. SOXS May 15th Calls SOXS back at least as high as the mid-$30's at some point in the next month would suggest at least 3X potential on the May 15th $30C. A run back into the $40's and we have 5X+ potential. Strategy Any strength in SOXS would trigger a speculative position in next month out-of-the-money calls, looking for 3X to 5X returns by mid-May. "Any strength" = taking out daily highs post mid-session.
