(The options apparently in play here are call options, or contracts that give the investor the right to buy a stock at an agreed price; they become profitable if the share price rises above that level.)
SoftBank’s losses on Monday accelerated into the afternoon in Tokyo, with shares having their worst performance since the pandemic shocked global markets in March.
SoftBank said last month that it believed it was “necessary to expand cash reserves … to ensure flexible options to respond to changes in the market environment.”
Prior to Monday’s fall, SoftBank’s stock was up about a third this year. It was a remarkable turnaround for the company, which struggled in March and April as the pandemic and the ensuing restrictions on travel and social interaction took a toll on many of the startups it has invested in.
In May, SoftBank reported an annual operating loss of 1.36 trillion yen ($12.7 billion) — its worst ever. The hit was driven almost entirely by the Vision Fund.