With a modest account, I like to generate premium as fast as possible—provided the instrument trades sufficient volume in both the underlying and its options. 3x leveraged ETF SOXL meets this criteria, with a 50-day average volume of over 200 million shares as of 6/2/2025, and weekly options with penny-wide spreads.
I prefer to keep my portfolio simple, and the instruments which comprise it must show a high degree of correlation. In that regard, SOXL and its underlying 1:1 index, semiconductor sector ETF SOXX, can be considered a subset of the NASDAQ, with stocks like NVDA comprising some of its largest holdings.
Currently, SOXL is trading under $20, making it attractive to accumulate shares for the purpose of generating premium.
SOXL trades similarly to TQQQ—it is a triple-leveraged instrument and a subset of tech. Nonetheless, as of this writing (6/8/2025), a look at the chart shows QQQ gained around 1000% from 3/31/2010 to 6/6/2025, while SOXL stands at approximately 2000% over the same period.
Being what it is, SOXL requires active management, as declines tend to be exponential in nature. That same volatility, however, is what makes selling options on this instrument a prospect worth considering. For all these reasons, I’m including SOXL in my portfolio.
Below are SOXX’s top 10 holdings as of 6/8/2025:
| Ticker | Name | Weight (%) |
|---|---|---|
| AVGO | Broadcom Inc | 9.50 |
| NVDA | NVIDIA Corp | 8.71 |
| TXN | Texas Instruments Inc | 7.53 |
| AMD | Advanced Micro Devices Inc | 7.14 |
| QCOM | Qualcomm Inc | 5.82 |
| MU | Micron Technology Inc | 4.45 |
| KLAC | KLA Corp | 4.37 |
| LRCX | Lam Research Corp | 4.32 |
| MCHP | Microchip Technology Inc | 4.25 |
| MPWR | Monolithic Power Systems Inc | 4.20 |