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Feeling lucky on Friday the 13 th ? It is time to dive into the pungent software dumpster. The sell-off in the iShares Expanded Tech-Software Sector ETF (IGV) has been arguably one of the most severe in the software sector’s history outside of major recessions or crashes like 2008 and 2022. I want to use options to define my risk, avoid the stench, and express a bullish view after investors have endured a more than 20% correction in this leading software ETF, the IGV. A significant sell-off in software stocks has been triggered by investor concerns that powerful new AI coding tools from Anthropic and OpenAI could disrupt the industry and various sectors have felt the wrath. Even a travel website like Expedia is down 15% in the last two trading days due to investors’ fear that AI-powered search and booking tools will disintermediate traditional booking sites by allowing users to plan and book trips without leaving a search engine. Seemingly no stock is safe from the perception that it is replaceable by AI to some extent. On Feb. 5, 2026, IGV traded down to $79.27 — not quite trading under “liberation day” lows of $76.68 — reflecting a one-day decline of almost 5%. This decline aligns with a broader market repricing of AI-related and enterprise software equities, as investors increasingly have turned leery of near-term monetization opportunities and balance-sheet discipline over unrestricted AI spending. Top 5 names in IGV are: Microsoft , Palantir , Oracle , Salesforce , Applovin , which on average are down 40% from their respective all-time highs in the last six months. These five stocks represent a 38% weighting of the IGV ETF. IGV has entered extreme oversold conditions, registering a RSI level of 14.85 earlier this month. I want to sell a put to finance an upside call, better known as a risk reversal. However, there is risk that IGV craters even lower and you will be “put” to own this ETF. Longer term, I want to own all of these names and I already have a long-term position in IGV. The Trade Sold March 20 IGV $81 put for $3.50 Bought March 20 IGV $83 call for $3.50 This is a zero-cost spread and was executed while IGV was roughly trading at $81 An investor must be prepared to own IGV at $81 in the event IGV moves lower in the next month. DISCLOSURES: Kilburg is long IGV and owns this spread. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.