Nanfang Dongying Raises the SK Hynix Leverage Fund Options Position Limit to Meet Market Demand

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ME AI Message, June 22, Southern East Asia Asset Management (CSOP Asset Management Ltd.) will raise the options investment cap for a leveraged ETF linked to South Korean chipmaker SK Hynix, with a size of $14.4 billion. After SK Hynix’s stock price saw a sharp surge, this move will give fund managers greater operational flexibility. According to a statement released by CSOP, starting from Tuesday, the fund may invest up to 49% of its net asset value (NAV) in options. The fund is designed to achieve a 2x investment return based on the daily price movement of SK Hynix stock. This adjustment increases the options investment cap from the prior 40% to 49%. And just in May this year, CSOP had raised this cap from 25% to 40%. In other words, as SK Hynix continues to climb on AI and HBM (high-bandwidth memory) demand, large amounts of capital have flooded into this 2x leveraged ETF. To maintain the product’s leverage target and respond to the fund’s rapid growth in size, CSOP is gradually loosening the limits on the proportion of derivatives such as options used by the fund. Click the link below to join the Beating · Feishu AI News channel, which monitors global AI hot topics and news 24/7. (Source: MLion)
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