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‘Nasdaq whale’ SoftBank may have helped trigger stock market brutality

According to a report from Financial Times, the trigger for a seismic decline in the stock market on Thursday and Friday that has erased weeks of gains for a frothy US stock market, may have been beaten by the investment company SoftBank.

US stock indices are rising

Mark DeCambre for MarketwWatch:

The report from the London-based financial paper says that the Japanese investment conglomerate SoftBank has uploaded options in technology shares in recent months that have contributed to the rally and may have been the market vulnerable to the punitive declines that the stock markets have been. experiencing the last 24 hours.

The FT, quoted an investment bank that described option purchases that SoftBank made as “dangerous” games on the market … The FT the report suggests that SoftBank Investment Fund may have purchased bullish call options.

Wall Street Journal wrote on Friday that SoftBank bought options related to billions of dollars in individual technology actions, which may have included bullish games on Tesla and Apple.

The reported “aggressive into the options market” for SoftBank will mark a new chapter for the investment firm, which has traditionally made major investments in start-ups through its $ 100 billion dollar Vision Fund, including those for the WeWork office-sharing platform, which has proved a black eye for the company operated by Masayoshi Son.

MacDailyNews Take: The market and Apple (after the recent rapid rise) were ripe for some consolidation as most long-term investors understand. Short-term traders will do what they do. Again, you have to take the bad with the good, and fortunately AAPL shareholders have had a lot of good so far this year. Thursday’s end of $ 120.88 is the lowest since only August 20 – just 10 trading days ago. Apple shares have continued to rise 65% since the beginning of the year, which must not be named, and up 127% in the last twelve months. 🙂

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