Hong Kong equity traders pay up for bullish Tencent derivatives in buying frenzy
Price of one contract, which bets the stock will rise past HK$800 by expiry, surged as much as 61,100%
25 January 2021 - 08:21
Hong Kong — Hong Kong’s equity traders cannot get enough of Tencent Holdings, the $926bn giant that’s on pace for its biggest-yet monthly gain.
They are paying up for bullish derivatives tracking the Chinese internet firm, buying thousands of January call options that expire on Thursday. The price of one Tencent contract, which bets the stock will rise past HK$800 by expiry, surged as much as 61,100% on Monday. Traders also rushed to offload their bearish puts, with one of Monday’s most-traded contracts down as much as 84% in value...
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