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Were Derivatives and SoftBank Behind The Tech Rally?

Ed Clissold, Chief U.S. Strategist, Ned Davis Research

11-Sep-20 07:37

Were Derivatives and SoftBank Behind The Tech Rally?

On Monday, SoftBank's market value fell by about $9 billion after the Financial Times broke news that the Japanese tech investor was the so-called “Nasdaq whale” that drove the US stock market to record highs in recent months.

SoftBank had reportedly spent about $4 billion on options focused on tech stocks with an overall exposure of about $30 billion. However, some analysts say it can’t attribute the overall market impact solely to SoftBank.

For a better understanding of this and how it all works, we spoke to Ed Clissold, Chief U.S. Strategist at Ned Davis Research.

Image Credit: Tada Images / Shutterstock.com

Produced by: Dayana Mustak

Presented by: Roshan Kanesan, Lyn Mak, Noelle Lim


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Categories:  TechnologyTechMedical Innovation and TechnologyBusiness AnalysisTrends and ForecastsMarketsInvestments

Tags:  SoftBanksOptionsDerivativesNasdaq WhaleTech Rally





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