Software stocks surge 35% from April low as options traders pile into bullish bets

Software stocks have entered a raging bull market, with the iShares Expanded Tech-Software ETF (IGV) surging 35% from its April low. The rally accelerated on Friday with a 5% gain, driven by double-digit percentage jumps in ServiceNow and Workday. Options activity on IGV exploded, with trading volume exceeding five times the daily average of the past 30 days and call options outpacing puts by a four-to-one ratio. Traders bought more than 50,000 calls on IGV in a single session, compared to fewer than 6,000 puts.

This surge in bullish options positioning reflects a dramatic shift in sentiment toward the software sector. After a prolonged downturn, the recovery has been swift and broad-based. The heavy call volume suggests traders are betting on further upside, potentially driven by expectations of strong earnings, AI-related demand, or a rotation into growth stocks. For equity traders, the IGV ETF's price action and options flow serve as a real-time barometer of risk appetite. Live stock prices and charts on NowPrice show how the market is reacting to this renewed optimism, with software names leading the charge.

Looking ahead, the sustainability of this rally will depend on upcoming earnings reports from key software companies and broader macroeconomic data. Traders will watch for any signs of slowing momentum or profit-taking, especially after such a sharp move. The elevated call-to-put ratio suggests that many market participants expect the trend to continue, but a reversal in risk sentiment or disappointing earnings could trigger a sharp correction. The next few weeks will be critical in determining whether this is a sustainable bull run or a short-lived rally.