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Last Trade - 01/12/20

Sector
Technology
Size
Large Cap
Market Cap £172.31bn
Enterprise Value £171.45bn
Revenue £9.34bn
Position in Universe 30th / 6434

'Nasdaq whale' closes more large options trades

Fri 18th September, 2020 10:31pm
By April Joyner
    NEW YORK, Sept 18 (Reuters) - A large options player which
some market watchers call the "Nasdaq whale" unwound bets on
several technology-related companies on Friday after the
sector's recent sell-off.
    The investor closed a position in a bullish call options
spread on Adobe Inc  ADBE.O  at a loss of roughly $200,000. The
spread represented around $935 million of notional value. The
call spread was originally bought on Aug. 5 among a group of
trades that some market analysts have attributed to SoftBank
Group Corp  9984.T .  urn:newsml:reuters.com:*:nL1N2G118K
    Adobe shares ended 1.4% lower at $467.55 as U.S. stocks fell
broadly.
    The investor sold stock at the time of the call spread
purchase, then bought back the shares after selling the options,
at a loss of roughly $9 a share. Because the options trades were
tied to stock, they had minimal impact on market activity,
unlike the sell-off earlier this month, said Christopher Murphy,
co-head of derivatives strategy at Susquehanna Financial Group. 
    The trade marks the first closure among the call spreads
believed to be tied to SoftBank, and it could prompt speculation
on whether it is "just a one-off or the beginning of a trend,"
Murphy said.
    Last week, an investor exited large options positions in
names such as Facebook Inc  FB.O , Netflix Inc  NFLX.O  and
Salesforce.com Inc  CRM.N , though those positions had different
structures from the call spreads tied to SoftBank.  urn:newsml:reuters.com:*:nL1N2G72EH
    Also on Friday, an investor closed large call options
positions in Alphabet Inc  GOOGL.O  and Amazon.com Inc  AMZN.O ,
noted Amy Wu Silverman, equity derivatives strategist at RBC
Capital Markets. Alphabet shares fell 2.4% and Amazon shares
dipped 1.8%, both underperforming the S&P 500 index  .SPX ,
which declined 1.1%.
    "These 'whale' tech unwinds continue to influence sentiment
and put pressure on the FANG names," Wu Silverman wrote in an
email, referring to the group of leading tech-related stocks
including Facebook, Amazon, Netflix and Alphabet.
    

 (Reporting by April Joyner; Editing by Ira Iosebashvili and
Richard Chang)
 ((April.Joyner@thomsonreuters.com; +1 646 223 7480; Reuters
Messaging: april.joyner.thomsonreuters.com@reuters.net; Twitter:
@aprjoy))
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