The whale pumping tech stocks in August revealed

Maybe its no secret for you that last weeks were quite impressing in how much stocks (and in particular tech stocks - including TESLA) did go up. And they did it without pause, defying fundamentals - but that its no surprise to you - but also speculators.

Well, the large whale behind this pump scheme has been unmasked by FinancialTimes. It is a japanese bank called SOFTBANK.

SoftBank is the “Nasdaq whale” that has bought billions of dollars’ worth of US equity derivatives in a series of trades that stoked the fevered rally in big tech stocks before a sharp pullback on Thursday and Friday, according to people familiar with the matter. The Japanese conglomerate had been snapping up options in tech stocks during the past month in huge amounts, fuelling the largest ever trading volumes in contracts linked to individual companies, these people said. One banker described it as a “dangerous” bet. The aggressive move into the options market marks a new chapter for the investment powerhouse, which in recent years has made huge bets on privately held technology start-ups through its $100bn Vision Fund. After the coronavirus market tumult hit those bets, the company established an asset management unit for public investments using capital contributed by its founder, Masayoshi Son.

Ok, now what? Will they dump now they have been unmasked? The last 2 trading days have been quite volatile; TESLA stock did lost about 30% from its peak at a moment. That's ok as 60% is still left to go back to earth from hyperloop (or whatever that crap technology is).

We dont know of course what Softbank will do but by any measures, they did try manipulating stocks they own via derivaties (call options). What's sad about these stories is the day when these schemes are revealed, the federals intervene to help these idiot risk takers and save them. Either with your children money of by debasing. That's how the markets function these days (unfortunately).

The surge in purchases of call options — derivatives that give the user the right to buy a stock at a pre-agreed price — has been the talk of Wall Street, as the sheer size of the trades appears to have exacerbated a “melt-up” in many big technology stocks over the past few months. In August alone, Tesla’s share price shot up 74 per cent, while Apple gained 21 per cent, Google’s parent Alphabet rose 10 per cent and Amazon 9 per cent.

And of course TESLA stock was on SOFTBANK's buying list.

Nothing new under the sun; business as usual...