<div id="readability-page-1"><div id="ArticleBody-InlineImage-108270121"><div><div>Pedestrians walk outside Salesforce Tower on Feb. 25, 2026 in San Francisco, California.Benjamin Fanjoy | Getty Images</div></div></div><div>Could the software's long national nightmare be over?As semiconductor shares dragged down the Nasdaq-100 for a second day, quietly, software stocks appear to have found their groove.Shares of the iShares Expanded Tech-Software Sector ETF (IGV) climbed more than 1% Monday, adding to a more-than 20% advance off April lows and trading at the highest since January. For many, that's enough to call it a bull market.Options traders are leaning into it, selling almost 28,000 puts on the ETF in Monday's session, a bullish position that reflects a view that the worst is past. The number of calls bought also outnumbered the number of puts bought. When traders sell a put, they are making a moderately bullish bet. They are obligated to buy the underlying stock at that put's strike price in exchange for the collected premium.</div><div>But traders are making more outright bullish plays.In one of the biggest options trades of the day, a trader spent $32 million buying 7,000 of the in-the-money 390-strike Microsoft calls expiring Aug. 21. Eight of the top 10 options trades in that stock were call-buyers.Helping invigorate optimism Monday was a report from Bank of America analyst Tal Liani who reinstated coverage of ServiceNow with a buy rating and $130 price target. Shares popped 9% and options traders pounced, scooping up more than 85,000 calls in the stock and trading five times more calls than puts.Even beleaguered Salesforce, which the BofA team labeled &#34;underperformed&#34; managed a 3.5% bounce and saw calls outpace puts three-to-one.While much of the category is still trading well off last year's highs, there's at least one categorical exception: cybersecurity. Amplify's cybersecurity ETF &#34;HACK&#34; is up 16% since April 20, including a 3% rally Monday, as stocks like CrowdStrike and Palo Alto Networks trade at all-time highs.Software stocks have been crushed in 2026 on fears of a so-called SaaSpocalypse, or the fear that AI agents will replace software companies. Even with the recent rally, the IGV is down 12% on the year.</div><div>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</div></div>

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Software stocks are experiencing a mini bull market despite semiconductor shares dragging down the Nasdaq-100. The iShares Expanded Tech-Software Sector ETF (IGV) rose over 1%, marking a 20% increase since April. Options traders are showing bullish sentiment, with significant call buying in Microsoft and ServiceNow. Cybersecurity stocks are also performing well, with Amplify's ETF up 16% since April. However, software stocks remain down 12% for the year amid fears of AI replacing software companies.

- Software stocks are showing signs of recovery with the iShares Expanded Tech-Software Sector ETF (IGV) rising over 1% and gaining more than 20% since April.  
- The market's optimism is reflected in options trading, with significant bullish bets on Microsoft and strong demand for ServiceNow, which saw a 9% jump following a positive analyst rating.  
- Despite recent gains, the IGV remains down 12% for the year, illustrating ongoing concerns regarding the impact of AI on software companies.

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Software stocks stage 'mini' bull market. Some traders see more gains