Profit of $442.7K: A whale exits before SK Hynix earnings report
Odaily Planet Daily News According to monitoring by Hyperinsight, the whale address starting with 0x434, which had previously executed a "short SKHX, long SKHY" spread-widening trade, has fully closed both legs before the earnings report, with the combined profit totaling approximately $442,700:
- At 15:00 today (Beijing time), the whale sold 20,000 SKHY long positions at an average price of approximately $137.6, with a total transaction value of about $2.753 million, resulting in a loss of roughly $133,000;
- During the same period, the whale bought back 4,500 SKHX short positions at an average price of approximately $1,071.1, with a total transaction value of about $4.82 million, resulting in a profit of roughly $576,000.
Calculated based on the average opening price, the implied ADR premium at cost was approximately 20.4%, while the corresponding premium at the closing price was approximately 28.5%, meaning the spread-widening trade has been realized. However, this combination was not a perfect hedge; the original SKHY long position only covered approximately 44.4% of the SKHX short position. Part of the profit came from the decline in the Korean stock-mapped contract.
SK Hynix is set to release its second-quarter earnings on July 29 at 9:00 AM Korean time, which is 8:00 AM Beijing time. The whale completed the exit approximately 17 hours before the earnings report. This move indicates that the whale has stopped betting on a further widening of the premium, or is guarding against a potential further narrowing of the spread before the earnings window.
As of press time, SK Hynix's Korean stock contract (SKHX) on Hyperliquid was trading at $1,069.5, while the US ADR contract (SKHY) was trading at $137.91. Based on conversion, the ADR-equivalent price is approximately $1,379.1, representing a premium of 28.9% over SKHX. This premium has narrowed by about 4 percentage points from the ~33.0% seen yesterday; during the same period, SKHX fell 13.5% and SKHY fell 16.2%.
