SOXL 3X Semi - Unusual Volume $2M+ traded for $42 strike

Apr 20, 2021

SOXL 2M+ in premium traded for $42 strike calls for Friday May 21th 2021 expiration traded today.

Unusual Options Volume Activity for $80 calls about 9000+ contracts traded through out the day (Above Open interest of only 1162) from $2.10 to $2.50

Various semi conductor stock earnings coming up soon.

Bounced off 50 EMA Today on the daily showing downside support. CCI is also trending up going from bearish to bullish after being sold through out the day.

Nice hammer on the 4H chart

A Months time on these options I would recommend a vertical spread to keep theta at bay.

Wait for confirmation of break of the $40.00 level for upward trend and possibly a close above this level to start a position.
Enter using $40 or $41 calls around trigger as theta burn will be less once ITM. Or consider a vertical.

Exercise caution when entering 3X ETF as they tend to move rapidly to the down side on any pullback.

Support 50 EMA $38.55
Trigger $40.00
Target 41.44, 42.44, stretch target of 43.45
SL close below 50 EMA

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