Micron ADR Premium Narrows by 4 Percentage Points as Whales Exit Position Expecting a Wider Spread

July 28th, according to Hyperinsight Monitoring, as of the time of reporting, Hyperliquid's Seoul SK Holdings (SKHX) was priced at $1069.5, and the US stock market ADR contract SK Holdings (SKHY) was priced at $137.91. The ADR equivalent price is approximately $1379.1, a 28.9% premium over SKHX. The premium narrowed by about 4 percentage points from approximately 33.0% yesterday, while during the same period, SKHX fell by 13.5%, and SKHY fell by 16.2%.

Previously, the whale with an address starting with 0x434, who implemented a "short SKHX, long SKHY" spread-widening trade, has closed all legs of the trade before the earnings report, with a combined profit of approximately $442,700:

- At 3:00 pm today, sold 20,000 units of SKHY long position at an average price of approximately $137.6, with a transaction amount of approximately $2.753 million, incurring a loss of approximately $133,000;

- During the same period, covered 4,500 units of the SKHX short position at an average price of approximately $1071.1, with a transaction amount of approximately $4.82 million, making a profit of approximately $576,000.

Based on the average position opening price, the implied ADR premium of the cost is about 20.4%, and the closing price corresponds to a premium of about 28.5%. The spread-widening trade has been realized. However, this combination is not a perfectly hedged position, as the original SKHY long position only covers about 44.4% of the SKHX short position, with part of the profit coming from the decline in the Seoul stock index.

SK Holdings will release its second-quarter earnings at 9:00 am KST on July 29th, equivalent to 8:00 am Beijing time. The whale exited approximately 17 hours before the earnings report, indicating that it has stopped betting on a further expansion of the premium or is guarding against further convergence of the spread before the earnings window.