Hynix ADR premium rises to 48.4%, top spread whale significantly narrows net short exposure.

November 9th, according to TradingBeats monitoring, on November 9th, the largest Korean-American spread trader of Hynix, whale 0x0242, today partially covered approximately $10.17 million of Hynix Korean stock contract SKHX short position in batches, realizing a trading profit of about $624,900; meanwhile, it continues to increase its ADR contract SKHY long position.

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

- SKHX short position about $13.61 million, average price $889.74, floating profit about $933,900;

- SKHY long position about $10.02 million, average price $128.49, floating loss about $402,700.

In its "short SKHX, long SKHY" combination, the paired portion benefited from ADR strengthening relative to Korean stocks and the premium expanding. The main change in this adjustment is the contraction of additional net short exposure: the notional amount ratio of short to long positions dropped from about 2.89:1 in the early morning to 1.36:1, and the net short position amount decreased from about $14.25 million to $3.59 million.

The current on-chain implied ADR premium is about 48.4%, higher than 42.2% a week ago. Exchange rates are still affecting pricing on both ends: the US dollar against the Korean won fell from about 1363.8 last Friday to about 1347 today, with the Korean won rebounding significantly.

Since SKHX has already converted Korean stock prices into US dollars, when the local currency price of Korean stocks and the USD price of ADR remain unchanged, a stronger Korean won will push up the SKHX price and compress the ADR premium, putting pressure on the SKHX short side of the combination.

Counting only the SKHX and SKHY positions, since the whale's first trade on July 10th, through continuous position adjustments, the address has accumulated a total realized trading profit and loss of negative $78,500. If adding the current two positions' combined floating profit of about $531,100, the trading return is about $452,600; after also including the cumulative net funding fees received of $229,600, the cumulative net return is about $654,000.

Address: 0x024294c53a69c1e6b39810b3fac87385752fffa1