Tencent, in our view, still the number one Asia sentiment name, surging 5.5% overnight, taking out new ATHs. Momentum is very strong, especially given the fact several of these big names have consolidated at highs, accumulating strength for this move higher.
Another active tech investor, Softbank, is surging some 5% as well today. Given the latest we have been reading about Softbank (adding to tech longs), the squeeze higher is not a surprise given the global tech momentum.
Over the weekend we wrote about the big US call spread buyer. Could it have been Softbank, adding extra "convexity"? Most of those are expiring tomorrow.
Some of those trades we outlined this Sunday:
"Last Monday the client bought November 6 3500/3700 call spreads paying 17.5 ref 3360 size 10k
Last Tuesday the client bought November 6 3500/3700 call spreads paying 23 size 25k
also bought the 3500/3600 call spread paying 29.4, size 25k
On Wednesday the client bought November 4 3425-3525 call spreads at 22.5 and November 6 3475-3675 call spread paying 20, size 8k"