HONG KONG: Hong Kong’s equity traders can’t get enough of Tencent Holdings Ltd., the $930 billion giant that’s on pace for its biggest ever monthly gain.
They’re paying up for bullish derivatives tracking the Chinese internet firm, buying thousands of January call options that expire Thursday.
The price of one Tencent contract -- which bets the stock will rise past HK$800 by expiry -- surged as much as 90,300% on Monday.
Traders also rushed to offload their bearish puts, with one of the most-traded contracts losing some 84% in value.
The stock rallied as much as 10% on Monday to HK$760, accounting for about two-fifths of the gains on the Hang Seng Index. The Hong Kong benchmark rose 2.1% and is set to close above the key 30,000 point-level for the first time since May 2019.
...