Flow God
Options-Flow Commentary
Institutions are massively accumulating software stocks for the long term, absorbing every new low while price sits at potential resistance. A $9 million-plus call sale at next month's $100 strike and VIX call buying show them hedging a possible rejection at prior highs. If resistance breaks, that buying could fuel the largest software rally ever seen; losing the $102.70 accumulation level would be the next step down. x.com x.com x.com x.comÂ
The iShares Expanded Tech-Software ETF is signaling a mid-term uptrend reversal. The last volatility hole marked the bottom and a first buy signal, and whale accumulation has risen steadily to 69.4%; a trend-reversal candle gave the second buy signal. Momentum bars at 90-92 act as key support, with resistance at $108.5 and $116. x.comÂ
The iShares Expanded Tech-Software ETF is an unappealing way to own software, even with a long-term bullish view on the sector. AOTS has outperformed it because its holdings are actually profitable and have higher revenue and earnings growth. x.comÂ
Software is heading for a renaissance as agentic AI transforms everything, and the software ETF IGV is consolidating ahead of a move higher. x.comÂ
An unusually large spike in call flow supports Microsoft's bullish $555 target. The 11:00-11:15 ET bucket showed $3.4 million in net calls, almost entirely in September 2027 $600 contracts; the chart projects a rise to $555 before a pullback. x.comÂ
Software valuations are at 10-year lows, with a forward PEG ratio of 1.43 that is cheaper than the S&P 500's, which looks enticing unless software is truly dead. The software ETF is at a key crossroads, still below a bearish trendline in place since October despite a 3% Friday gain; a direct breakout would likely complete the bottoming phase, though it could still pull back to form a fuller inverse head and shoulders. x.com x.comÂ