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

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 as the “whale” behind a series of large options trades that 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

1. Amazon

Ticker: AMZN
Market cap: $1.6 trillion

2. Adobe

Ticker: ADBE
Market cap:
$231.7 billion

3. Alphabet

Ticker: GOOGL/GOOG
Market cap:
$1.04 trillion

4. Netflix

Ticker: NFLX
Market cap:
$213.4 billion

5. Salesforce.com

Ticker: CRM
Market cap:
$224.3 billion

6. Microsoft

Ticker: MSFT
Market cap:
$1.53 trillion

7. Facebook

Ticker: FB
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

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