Since these options are more than two years away from expiration, their premium will be more expensive than those option contracts that expire faster, which is the main reason for the huge transaction volume of these options. Although it is difficult to determine whether this is a transaction by a single investment institution, this repeated buying model may also be that there is a big buyer building a position, while others may imitate and follow up.
Regardless, Nomura cross-asset strategist Charlie McElligott wrote in a report to clients that the amount of purchases of these call options is really "very eye-catching."
In fact, if you trace it back slowly, this investment institution began to steadily buy call options that expired in June 2027 as early as a month ago. The total premium of options placed through Nomura Holdings Inc alone is close to US$3 billion.
According to Bloomberg, recently, investment institutions have suddenly spent billions of dollars to bet on the rise in the U.S. stock market, which has become a hot topic in the options market in recent days. The stock that is favored is the e-commerce giant Amazon.
Major index futures in the US Wall Street stock market rose slightly on Friday (May 23). At the time of press time at 7 o'clock, the Standard & Poor 500 futures rose slightly by 1.60 points or 0.03% to 5843.60 points; the Nasdaq 100 futures, dominated by technology stocks, also rose slightly by 9.50 points or 0.05%, to 21,122.00 points; the heavyweight Dow Jones Index futures fell by 30.70 points to 41,828.40 points. The U.S. Stock Exchange will close on Monday (May 26) to commemorate the fallen soldiers (Memorial Day). The New York Stock Exchange and Nasdaq will resume trading on Tuesday (May 27). U.S. Treasury yields fell from recent highs after the U.S. House of Representatives passed President Trump’s tax and spending bill, and U.S. stocks also fluctuated heavily overnight (Thursday). However, at the end of the trading day, the U.S. market successfully erased the decline in the morning and finally closed at almost the same level. The Standard & Poor 500 index fell slightly by 2.60 points overnight and closed at 5842.01 points. The Dow Jones Index also slightly lowered by 1.35 points, closing at 41,859.09 points. The Nasdaq 100 index rose slightly by 0.15% or 32.11 points, closing at 21,112.47 points. Overnight trading in the U.S. stock market turned slightly quiet, with the exchange's total trading volume of 16 billion shares, which is less than the average trading volume of 17.56 billion shares in the past 20 days. Amazon.com IncAccording to Nomura Holdings, investment institutions spent $316 million to purchase At-the-money Calls from e-commerce giant Amazon, $159 million to purchase Salesforce Inc, and $878 million to purchase similar options from ARM Holdings.
Friday (May 23) Focus: Tesla shares rose 1.30% before trading tonight, despite a Trump tax and spending bill passed by the House, including measures to require electric and hybrid owners to pay annual fees, and the Republican-led Senate, which also voted to revoke a California measure banning the sale of new gasoline-powered vehicles by 2035, with a deadline of $345.46. According to Reuters, Trump will sign an executive order as early as Friday to promote the development of the nuclear energy industry by simplifying the regulatory procedures for the approval of new reactors and strengthening the fuel supply chain. The news drove nuclear energy stocks to soar before the market trading tonight. At the time of press time, Oklo Inc's stock price soared 18%; NANO Nuclear Energy, NuScale Power and Energy Fuels all rose by about 17%. Before the market tonight, a large number of sub-stock prices also rose again, highlighting the big fluctuations in the emerging industry over the past few weeks. At the time of press time, SEALSQ shares rose by 5.66%, Quantum Corporation and Arqit Quantum shares rose by about 4%, and Quantum Computing shares also rose by 2%. On Friday, let’s take a look at who has been favored by e-commerce giant Amazon recently. The stock fell by 0.16% before trading tonight, and was reported at $202.78. Pre-market active stocks are in sequence: Wolfspeed Inc, Nvidia, Tesla, Plug Power and Palantir Technologies. At the time of press time, except for the decline in Plug Power's share price, the stock prices of the other four active stocks rose. (NASDAQ: AMZN) Pre-market trading focus:Ackerman and his team also expressed confidence in Amazon CEO Andrew Jassy, who believes he can drive the business more effectively while achieving "higher profitability expansion."
Ackman and his investment team reported to clients the latest developments in Pershing Plaza Capital Management's portfolio, Chief Investment Officer Ryan Israel said: "The company's biggest investment decision is Amazon."
In addition to this unknown investment institution, Bill Ackman, an American billionaire and hedge fund manager, also told his clients overnight that the investment fund Pershing Square Capital Management, which he runs, bought Amazon shares last month.. He bets that the online retailer's profits will continue to grow, as U.S. President Donald Trump's tariff measures should ultimately not be as harsh as consumers initially feared.
An investment institution spent $316 million to purchase At-the-money Calls from e-commerce giant Amazon. (Reuters)