Traders say the Softbank 'whale' may be back as options activity spikes for Big Tech stocks

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Multiple sources told CNBC's David Faber that there was $200 million spent on Thursday morning on call options for Netflix, Amazon, Facebook and Alphabet,

SoftBank Group Corp. Chairman and Chief Executive Officer Masayoshi Son speaks during a press conference on November 6, 2019 in Tokyo, Japan.

"A number of sources in the derivative markets on major trading markets noting that significant call buying, and they all point to Softbank as being behind it," Faber said on "Reports by the Financial Times, Wall Street Journal and other outlets identified Softbank as the Nasdaq "whale" whose massive options activity led to a boom for major tech stocks in August. The news led to aas investors worried about the new strategy for the bank and its CEO Masayoshi Son.

Call options allow the traders who hold the options to buy a stock at a predetermined strike price, with the bet being that the stock price will rise above the strike price. Unusually large call buying can lead to other traders buying the stock to cover their positions, driving the market price higher.

 

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