SoftBank’s Bet on Tech Giants Fueled Powerful Market Rally

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Japanese conglomerate SoftBank fueled the recent stock market rally by buying options tied to billions of dollars worth of individual tech stocks, people familiar with the matter say

Investors watching the vertigo-inducing rise—and Thursday’s fall—of technology stocks are buzzing about a single trade, a giant but shadowy bet on Silicon Valley big enough to pull the market up with it.

The investor behind that trade, according to people familiar with the matter, is Japan’s SoftBank Group Corp., which bought options tied to billions of dollars worth of individual tech stocks. Investors and analysts, aware of the activity but in the dark as to who is behind it, say it has turbocharged the tech sector, whose...

 

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zerohedge was discussing the out-of-money calls on Tesla and its affect on the underlying stock while this was happening. The non-linear hedging, gamma-hedging, had a positive feedback effect.

This is an absurd story. Buying $4 billion of tech stocks would barely create upward pressure on tech stocks for more than 10 or 15 minutes in any given day. 🤷‍♂️

Initially I had a comment about the stock market.. 😇

WSJ, a great time to just be free for a couple months, considering circumstances/economy.~ i.e. I (long time member) pay $120 or so for Amazon Prime. My niece, a teacher gets it for like $45, and some get it for free.

🖕🏼

“According to people familiar with the matter” What matter is that precisely? How can they be privy to such information Smh

he's just doing what jesus would do 🤣

Trumps economy is roaring back...as expected

situation is a very simple, after court ruled Snowden unveiled illegal surveilance, that just opened way to multy billion dollars lawsuits against tech giants illegally collaborated with NSA and FBI. And collaborated absolutely all companies

enjoy your money vampires. im sure you all sold your tech stocks yesterday

The stock market rebounded to records this year despite serious pain in the economy, fueled by a single illusion by SoftBank, according to people familiar with the matter

Hope they lost big with the drop.

Were Trump and Abe behind this?

I'm curious as to the expirations and strikes off the open options.

sie_sophie Pass the buck... Deflect the fault..

I highly doubt $50B in option purchases was enough to “fuel” the rally. We gotta thank Powell and our folks over the Fed for that.

Wall Street is rigged. Putin, MBS China are pouring trillions into the stock market to help trump and the RepubliCONs.

Now I understand MAGA 💡! The J is silent... M ake j A pan G reat A gain

How is this not a 9(a)(2) violation?

Either master or last stroke

Oh dear, WSJ. That tweet was crying out for an apostrophe. Billions of dollar worth = ❌ Billions of dollars' worth = ✅ I also recommend Strunk & White. Modern 'journalism' eh? Shocking.

ncsu_blowery what you think?

Nice way to increase the multiples at which your private equity investments are valued

Corruption and manipulation by the fed and big banks

Propping us up one trade at a time. Let it all come tumbling down...and soon.

pitagorarara Crazy Japanese 😇😇😇

What does this mean to normies? Are they saying the Japanese were behind the recent stock boom?

And? Blame the suckers who took the bait!

Is there anything Japanese softbank can’t fuck up? This is an intentional attack on American markets realDonaldTrump

OV_BABY

pretty soft if you ask me

Infarct_Invest Japanese inflation and moneyprinting of the rails transferred into the US with Softbank working as the vehicle.

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