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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