The tech sector started the week down, but Wednesday saw a rebound. The SPDR S&P 500 Technology ETF (XLK) boasts $90 billion in assets and a 27-year history. However, the chart for XLK has been flat, indicating potential trouble for the tech trade.

XLK’s performance hinges on its top three holdings, which make up over 38% of the fund’s assets. While most of the top 25 holdings have seen losses, a few pockets are showing gains. Traders are finding it challenging to see significant price gains, creating a tight trading range.

The tech sector is currently under scrutiny, with the Avoid Big Loss (ABL) rule in effect. While XLK offers some potential for risk-managed traders, the options market remains liquid. Traders are exploring strategies like married puts to navigate the uncertain tech landscape.

One strategy for XLK involves married puts, offering a safety net with unlimited upside potential until June expiration. With the sector’s volatility and present concerns, traders are adjusting positions to mitigate risk. Rob Isbitts recommends a cautious approach to tech investments in the current market environment.

Read more at Yahoo Finance: There’s Trouble in 2026 for Tech Stock ETFs. How To Play XLK Right Now.