Sun Zhengyi and technology stocks? Mysterious investors buy Fang call option

category:Finance
 Sun Zhengyi and technology stocks? Mysterious investors buy Fang call option


According to tradealert, the investor spent about $180 million on the options, with the nominal value of the underlying options about $1.7 billion.

Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, said he was not sure who had bought so many calls, but he felt like Softbank. Softbank declined to comment.

Murphy also believes that based on the historical experience of NASDAQ whale purchase, this approach is unlikely to stimulate the reaction of other investors, and its impact may be limited to the options market, so it is more likely to cause volatility disturbance than the impact on stock prices.

Institutional and retail investors, including Softbank, launched an option buying boom in August. According to the shareholding report submitted by Softbank to the U.S. financial regulators, Softbank has spent about $4 billion since the second quarter to buy technology stocks such as Tesla, Amazon, Googles parent company alphabet, NVIDIA, Netflix, zoom and pinduoduo. At the same time, Softbank also used about $4 billion to subscribe for call options on these technology stocks. The media called Softbanks options NASDAQ whales.. Some analysts said the deals may have boosted the September technical sell-off in US stocks, as the call traders sold shares they had bought to hedge their short positions in options.

Institutional and retail investors, including Softbank, launched an option buying boom in August.

Some analysts said the deals may have boosted the September technical sell-off in US stocks, as the call traders sold shares they had bought to hedge their short positions in options.