By Nov. 9, wallet 0x0242 had adjusted its SK hynix-related contracts, leaving a $3.59 million net short in SKHX, which tracks Korean shares, while adding to a long tied to the company’s American depositary receipt (ADR).
SKHY is linked to the ADR. The implied premium reading reached 48.4%, compared with 42.2% a week earlier.
The Nov. 9 position changes included a roughly $10.17 million reduction in SKHX shorts and an increase in SKHY longs. The wallet’s short count fell to 16,300 from 25,100 earlier that day, while its long count rose to 81,100 from 58,700. The closed portion of the short produced about $624,900 in realized gains.
The net position was about $3.59 million short, down from about $14.25 million. The short-to-long notional ratio eased to 1.36-to-1 from 2.89-to-1. The contracts were valued at about $13.61 million on the short side and about $10.02 million on the long side.
At the update, the SKHX leg had an unrealized gain of about $933,900, with an average price of $889.74. The SKHY leg showed an unrealized loss of about $402,700, with an average price of $128.49.
The USD/KRW rate was about 1,347, down from 1,363.8 on Friday, indicating a stronger won. If Korean-share and ADR prices stayed unchanged, that currency move would lift SKHX’s dollar price, reduce the implied premium and weigh on the short position.
