tech

February 13, 2026

Fears of AI disruption have created an opening for this software options trade

The iShares Expanded Tech-Software Sector ETF (IGV) sell-off has been arguably one of the most severe in the sector's history, but it's created an opportunity.

Fears of AI disruption have created an opening for this software options trade

TL;DR

  • The iShares Expanded Tech-Software Sector ETF (IGV) has seen one of its most severe sell-offs outside of major economic downturns.
  • Investor concerns about AI coding tools from Anthropic and OpenAI disrupting the software industry have triggered the sell-off.
  • Major software stocks within the IGV, including Microsoft, Palantir, Oracle, Salesforce, and Applovin, are down significantly from their highs.
  • The IGV has entered extreme oversold conditions, indicated by a low RSI level.
  • A zero-cost risk reversal options trade (selling a put, buying a call) is proposed to express a bullish view, with the investor prepared to own IGV at $81 if the price falls.
  • The article's author has a long-term position in IGV and owns the proposed spread.

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