Business_news These are the 7 technology stocks Softbank piled into via call option strategies, report says


The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo


  • After being identified as the “whale” behind a series of option trades in technology stocks earlier this month, the SoftBank Group is now reconsidering its strategy,Bloomberg reported on Friday.
  • The firm met with investors to explain that its option trading strategy is somewhat conservative and is only in blue-chip tech stocks.
  • SoftBank employed a strategy of buying out-of-the-money call options on tech stocks, and selling even higher priced calls on the same names, according to the report.
  • Here are the seven technology stocks SoftBank piled into via call options, according to the report.
  • Visit the business Insider homepage for more stories.

After being identified asthe “whale” behind a series of large options tradesthat raised eyebrows among investors earlier this month, the SoftBank Group is reconsidering its strategy,Bloomberg first reported.

The Japan-based tech conglomerate told investors that its multi-billion dollar bet on tech stocks is relatively conservative given that it is concentrated in a small group of blue-chip tech stocks.

The firm employed a call spread strategy: buying out-of-the-money call options on a stock, and then selling even higher-priced out-of-the-money call options to collect the premium. This type of strategy caps upside potential, while the premium collected from selling call options helps lessen the downside potential.

Now, SoftBank is reconsidering the trades and trying to reassure its investors after it experienced a near $10 billion decline in market value after it was identified as the options whale.

Here are the seven technology stocks SoftBank piled into via call options, according to the report.

Read more: Buy these 17 ‘superstar’ stocks poised to soar as they use AI technology to drive market-beating growth, UBS says


Market cap:$1.6 trillion


Market cap:
$231.7 billion


Market cap:
$1.04 trillion


Market cap:
$213.4 billion

Market cap:
$224.3 billion


Market cap:
$1.53 trillion


Market cap:
$768.6 billion

Read more: ‘The psychology is even more dangerous than 20 years ago’: A Wall Street investment chief says stock valuations are giving him dot-com bubble flashbacks – and warns of a major meltdown in the next year

Read More