Reality Check
July 27, 2026

SOXS Gaps Get Bigger the Further It Runs From Its Low, But Only Because Volatility Does

Its gaps get bigger and more frequent at every level higher from the ATL.

SOXS is a 3x inverse semiconductor ETF, which makes it one of the gappiest instruments a retail trader is likely to touch. We looked at every session it has traded, 4,121 of them from March 2010 to July 2026, and asked three things: how often it gaps, how often those gaps get filled, and whether either changes as the ETF runs further above its all-time low.

How often it gaps

Filled vs Challenged

Neither happens as often as you might expect.

Outcomes of Daily SOXS Gaps
2,736 gaps of 1% or more, March 2010 to July 2026.
Gap SizeGaps% Filled% Challenged% Never Touched
All gaps2,73624.6%22.7%52.7%
1 to 2%1,01333.6%30.5%35.9%
2 to 3%63125.4%23.9%50.7%
3 to 5%64718.7%17.5%63.8%
5 to 10%36811.7%12.0%76.4%
Over 10%7711.7%6.5%81.8%

Trying to fade these gaps loses roughly three times out of four, and the bigger the gap, the worse the odds get. Once a gap exceeds 10%, four out of five are never touched at all.

Gaps get more frequent as it runs off its all-time low

How often SOXS opens with a gap4,121 sessions, March 2010 to July 2026.Grouped by distance from its all-time low0%15%30%45%60%75%90%Share of sessions59.516.85.70-10%n=191365.725.49.410-20%n=86573.134.114.620-30%n=44677.140.31830-50%n=49478.746.820.250-75%n=26785.953.828.275-100%n=788363.851.1100%+n=47How far SOXS closed above its all-time lowGapped 1% or moreGapped 3% or moreGapped 5% or more

A gap of 5% or more turns up on 5.7% of sessions when SOXS is within 10% of its ATL, and on 51.1% of sessions once it is more than 100% above it.

The increase in Gap Size is just the Volatility

The farther SOXS is above its all-time low, the bigger and more frequent the gaps become.

That looks like a useful signal.

But there’s a catch.

When SOXS is far above its low, it almost always means it just had a big upward spike. After a big spike, the ETF is already more volatile than usual.

So the higher gap rates you’re seeing are mostly just the normal result of higher volatility and not some special effect of “being far from the low.”

In other words, the distance above the low is mostly just a stand-in for “this thing has been moving a lot lately.” Once you already know how volatile it is, the distance itself doesn’t add much new information.

Gap size rises, but so does volatility4,121 SOXS sessions, March 2010 to July 2026. Both bars are percent moves, so they compare directly.The orange number is the gap as a multiple of that swing. It barely moves across the first five bands.0%2%4%6%8%10%Percent move1.273.680.34×0-10%n=19131.594.530.35×10-20%n=8652.085.340.37×20-30%n=4462.346.130.37×30-50%n=4942.797.000.41×50-75%n=2673.487.950.45×75-100%n=785.178.710.66×100%+n=47How far SOXS closed above its all-time lowMedian gap that morningMedian daily swing over the prior 10 sessions
Both bars are percent moves, so they can be compared directly. The orange number above each pair is the gap as a multiple of that swing.

Volatility more than doubles across the bands, rising from 3.68% to 8.71%, while the gap keeps pace almost exactly. The ratio sits at 0.34 near the low and reaches 0.41 when price is 50 to 75% above ATL. Across the first five bands, which cover 97% of SOXS’s history, the ratio barely moves.

Gap size and volatility, band by band
Volatility is the typical daily swing over the 10 sessions before the gap. The last column is the gap as a multiple of that swing, and it is the column that matters.
Above the LowSessionsMedian 10-Day SwingMedian GapGap as a Multiple of the Swing
0 to 10%1,9133.68%1.27%0.34×
10 to 20%8654.53%1.59%0.35×
20 to 30%4465.34%2.08%0.37×
30 to 50%4946.13%2.34%0.37×
50 to 75%2677.00%2.79%0.41×
75 to 100%787.95%3.48%0.45×
Over 100%478.71%5.17%0.66×

The last row is the one place the ratio breaks ranks, at 0.66 against 0.34 to 0.45 everywhere else. That would mean gaps turn outsized at extreme extension rather than merely tracking volatility. It rests on 47 sessions spread over sixteen years, so it is worth watching rather than trusting.

SOXS gaps on two out of every three sessions, and most of those gaps remain unfilled. Only about one in four fill by the close, and more than half never fill at all. Fading them just because they gapped is a weak trade, and it gets weaker the bigger the gap is.

Both gap frequency and gap size rise as price moves further above the all-time low. The pattern looks clean, like a staircase. But it is mostly a volatility effect. Once you measure each gap against how much the ETF was already moving, distance above the low adds almost nothing.

See Where Any Leveraged ETF Sits Against Its Low

TradeIntel’s Spike Analyzer shows how far each leveraged ETF sits above its all-time low, how many cycles it has completed, and the size of its previous moves.

Open the Spike Analyzer

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