From The Times of London, November 13:
The seller is said to have placed the bet a month before revelations about the former chief executive’s affair with an alleged Chinese spy came to light
A mystery trader has made $196m from, in effect, shorting Nvidia stock before Jensen Huang’s resignation as chief executive, it has emerged.
The trader is said to have bought contracts giving the holder a guaranteed sale price of $150 per Nvidia share. The value of the contracts rose sharply as the stock fell on news of Huang’s affair and subsequent resignation. At the same time, the trader helped to fund the bet by selling cheaper contracts pledging to buy Nvidia shares at $100 if the stock fell below that level.
The Financial Times reported that Joseph Niles, a director at Macro Risk Advisors who spotted the bet, calculated the unnamed trader had made $196m. It was placed on October 12, a month before revelations about Huang’s extramarital affair emerged.
The trader, in effect, shorted Nvidia’s stock using put contracts....
....MUCH MORE
There are others. You can bet on it.
