SK Hynix ADR premium rises to 48.4%, with whales significantly reducing their short exposure

AT A GLANCE

According to the report, the implied premium of SK Hynix ADR has risen to 48.4%, and address 0x0242 reduced its net short amount to approximately 3590000 USD by covering SKHX short positions and increasing SKHY long positions.

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SK Hynix ADR premium rises to 48.4%, with the leading spread whale significantly narrowing its net short exposure

BlockBeats reports, November 9, according to TradingBeats monitoring, on November 9, SK Hynix's largest Korea-US spread trader, the whale address 0x0242, today gradually covered approximately 10,170,000 USD worth of SK Hynix Korean stock contracts (SKHX) short positions in batches, realizing trading profits of about 624,900 USD; meanwhile, it continues to increase its long positions in ADR contracts (SKHY).

As of press time, this address's SKHX short position has decreased from about 25,100 contracts to 16,300 contracts, while its SKHY long position has increased from about 58,700 contracts to 81,100 contracts. Currently, the two positions stand as follows:

- SKHX short position: approximately 13,610,000 USD, average price 889.74 USD, unrealized profit of about 933,900 USD;

- SKHY long position: approximately 10,020,000 USD, average price 128.49 USD, unrealized loss of about 402,700 USD.

In its "short SKHX, long SKHY" combination, the paired portion benefits from the ADR strengthening relative to the Korean stock and widening premium. The main change in this adjustment is a reduction in additional net short exposure: the nominal amount ratio between short and long positions has dropped from approximately 2.89:1 early this morning to 1.36:1, and the net short amount has decreased from about 14,250,000 USD to 3,590,000 USD.

Currently, the implied ADR premium on-chain stands at around 48.4%, higher than 42.2% one week ago. Exchange rates continue to influence pricing on both sides: the USD/KRW rate has fallen from approximately 1363.8 last Friday to about 1347 today, with the Korean won showing a noticeable rebound.

Since SKHX already converts Korean stock prices into USD, when the Korean stock's local currency price and the ADR's USD price remain unchanged, a stronger won will push up SKHX prices and depress the ADR premium, putting pressure on the short side of SKHX in this combination.

Counting only SKHX and SKHY positions, since this whale first traded on July 10, through continuous adjustments, the cumulative realized trading profit and loss for this address totals negative 78,500 USD. If we add the current offsetting combined unrealized profit of about 531,100 USD, the total trading gain comes to approximately 452,600 USD; further adding the accumulated net funding fees received of 229,600 USD, the cumulative net profit amounts to roughly 654,000 USD.

Address: 0x024294c53a69c1e6b39810b3fac87385752fffa1

Original article link https://m.theblockbeats.info/flash/376302

Key points

BlockBeats, citing TradingBeats monitoring, reported that on November 9, address 0x0242 gradually covered approximately 10170000 USD SKHX short positions, realizing a trading profit of about 624900 USD, and continued to increase its long positions in SKHY.
As of press time, SKHX short positions decreased from about 25100 to 16300, while SKHY long positions increased from about 58700 to 81100.
SKHX short positions are approximately 13610000 USD, with an average price of 889.74 USD and a floating profit of about 933900 USD; SKHY long positions are approximately 10020000 USD, with an average price of 128.49 USD and a floating loss of about 402700 USD.
The short-to-long notional ratio decreased from about 2.89∶1 to 1.36∶1, and the net short amount decreased from about 14250000 USD to 3590000 USD.
The on-chain implied ADR premium is about 48.4%, higher than 42.2% one week ago; USD/KRW has fallen from around 1363.8 to around 1347.
The text states that since the first trade on July 10, counting only SKHX and SKHY positions and funding rates, the address has accumulated a net profit of approximately 654000 USD.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This is a spread trade that shorts SKHX and goes long SKHY. The pairing portion bets that ADR will outperform Korean stocks; after covering the short position and adding to the long position, the net short exposure from this additional bearish bet has narrowed significantly. The article also notes that SKHX converts Korean stock prices into USD, so even if the stock prices in both markets remain unchanged, a stronger won will push up SKHX and lower the ADR premium, putting pressure on SKHX shorts.

Why it matters to readers

Position adjustments show that this address has reduced its unilateral net short risk, but the portfolio is still affected by changes in ADR premiums and the USD/KRW exchange rate. The implied premium of 48.4% and its subsequent changes are important indicators for assessing the performance of this spread trade.

Beginners should view it as a high-risk intermarket spread trade, rather than simply a bullish or bearish bet on SK Hynix. Nominal position size, unrealized P&L, and realized gains have different meanings, and exchange rates and funding costs can also alter the final outcome.

Risks and unknowns

The information only relays TradingBeats’ monitoring and does not provide independent on-chain verification results.
The true identity of the individual or institution behind “Giant Whale” cannot be confirmed from the original text.
48.4% is the on-chain implied ADR premium mentioned in the text, and its specific calculation method is not explained.

SK Hynix ADR premium rises to 48.4%, with whales significantly reducing their short exposure

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