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SoftBank: From a 300 year vision to the Nasdaq whale

SoftBank’s shares continued their slide today as investors continue to question SoftBank’s unusual option trades on Big Tech companies. What happened? Long story short, SoftBank went all-in and more on Big Tech. It bought monstrous options that hinge on Big Tech stocks continuing their stratospheric rise. Although SoftBank earned over $4 billion in unrealized gains on these trades, investors are very concerned.  First, the gains are unrealized; they have not and can not be booked yet. In fact as soon as Big Tech stocks gave up some of their gains towards the end of last week, most of these unrealized gains evaporated.  Second and most importantly, engaging in option trades of this size represents a massive shift in the risk profile of the company. SoftBank started in telecommunications and its Founder and CEO - Masa Son - had a 300 year vision. However, it’s clear its investment strategy has changed and the company is very focused on the present and only the present. The chan...

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