What Softbank Is Doing Is What 'Amateurs' Do, Says Jim Cramer
Softbank has been reportedly taking huge options positions in technology shares, and this could have factored into tech's recent rally.
The story was broken by the Financial Times late last week.
The FT wrote that the company had been buying options in tech stocks throughout the past month in large amounts, which helped to fuel the largest ever trading volumes in contracts linked to individual companies. The FT cited people familiar with the situation.
Real Money's Alex McMillan wrote about the so-called 'Nasdaq whale' that Softbank became.
The Japanese-Korean maverick investor Masayoshi Son has reportedly been buying billions of dollars in derivatives linked to U.S. tech stocks, perpetuating this summer's "melt-up" in the market.
Son's Softbank Group is the "Nasdaq whale" that has shocked and worried market participants with its aggressive purchases of tech options, the Financial Times reported in its weekend edition. Softbank shares plunged on Monday as investors in Japan got a chance to respond. Still, Son is looking at a summer gain on paper of around US$4 billion on his aggressive bets.
So, what does Jim Cramer make of the story?
He said that if the reports are true then Softbank is doing what "amateurs" do, not what "professionals" do.
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