Japanese conglomerate Softbank Group Corp. (SFTBY) is notoriously remembered for its disastrous $18.5 billion investment into shared workspace startup WeWork.
But it’s now in the headlines for a rumored $4 billion options trade that made the firm billions in profits…
Even as it caused the tech pullback we’ve seen over the last few days.
At least, that’s the Big Media version of events.
The real story is less pretty.
But it does show how you can book a nice profit, too.
The tech retreat that started last Thursday has continued this week. The tech-heavy Nasdaq opened down by more than 2.5%, while the Dow and S&P 500 started trading almost 2% in the red.
Big Media’s favorite theory for why this happened is Japan’s tech and startup conglomerate Softbank Group Corp. (SFTBY). We knew from earlier filings that the company poured about $4 billion into U.S. tech stocks in the spring.
Last week, reporting by the Financial Times and the Wall Street Journal revealed the firm had also been buying billions of dollars’ worth of call options on those same stocks, to juice their returns.