CSOP Asset Management will raise the options investment ceiling in its leveraged exchange-traded fund tracking SK Hynix Inc. to 49% of net asset value, up from 40%. The change takes effect Tuesday and follows an earlier increase from 25% in May, reflecting the fund's need to adapt to volatile market conditions.

The $14.4 billion fund aims to deliver twice the daily stock return of the South Korean chipmaker, amplifying both gains and losses. This leveraged structure makes options positions critical for managing risk and maintaining target exposure when shares move dramatically.

SK Hynix shares have experienced significant volatility amid semiconductor market swings and artificial intelligence demand cycles. The repeated limit adjustments suggest the fund has struggled to maintain its intended leverage ratio during sharp price movements.

Higher options allocation provides CSOP more tools to hedge and adjust exposure while keeping the fund within regulatory bounds. Investors should monitor how this affects tracking performance during the next major semiconductor sector move.