SoftBank Winding Down Options Trading After Investor Backlash – Bloomberg News


Japan’s SoftBank Group Corp is winding down its derivatives strategy following investor backlash, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The company is letting its options expire, instead of maintaining its positions, according to the report. (https://bloom.bg/2JBIuT)

About 90% of the contracts will close out by the end of December as they are short-term, Bloomberg reported.

The company will hold on to its underlying portfolio of big tech stocks, which included Amazon.com Inc and Facebook Inc, the report said.

“This could be big news … and bad for the tech market,” Andrew Brenner, New York-based head of international fixed income at NatAlliance Securities, said in a note.

“… depends on how much you believe SoftBank was the culprit behind all the option volatility and the whale type moves,” Brenner added.

SoftBank, whose shares are up 53% so far this year, were down 0.6% in Tokyo.

The company did not immediately respond to a Reuters request for comment.

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