Options investor makes big bets on Nasdaq's popular 'FANG' stocks

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[NEW YORK] An investor bought large blocks of upside call options on Thursday in companies such as Netflix and Amazon.com, trades reminiscent of outsized options purchases made in August by a large investor known as the 'Nasdaq whale.' The unknown investor purchased calls expiring in January and March for Netflix, Amazon, Facebook and Alphabet Inc while selling shares of those companies, said Christopher Murphy, co-head of derivatives strategy at Susquehanna Financial Group. Read more at The Business Times.

An investor bought large blocks of upside call options on Thursday in companies such as Netflix and Amazon.com, trades reminiscent of outsized options purchases made in August by a large investor known as the "Nasdaq whale."[NEW YORK] An investor bought large blocks of upside call options on Thursday in companies such as Netflix and Amazon.com, trades reminiscent of outsized options purchases made in August by a large investor known as the"Nasdaq whale.

The four companies are collectively known among investors as the"FANG" group, for the first letters of Facebook, Amazon, Netflix and Alphabet's Google. Such a trade involving options allows an investor to reduce stock exposure while maintaining the ability to benefit from future gains in stock prices.

In total, the investor paid a premium of about US$180 million for the options, which have a notional value of roughly US$1.7 billion, according to data from Trade Alert. Some market watchers have attributed similar large call purchases in tech-related names made in August to SoftBank Group. Those institutional trades came during a flurry of call buying driven by retail investors.

 

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