Southern East Securities Increases SK Hynix Leveraged Fund Option Position Limit to Meet Market Demand
BlockBeats News, June 22nd, according to Bloomberg, CSOP Asset Management Ltd. will increase the options investment limit of a $14.4 billion leveraged ETF linked to South Korean chipmaker SK Hynix. After a sharp rise in SK Hynix's stock price, this move will provide the fund manager with greater operational flexibility.
According to a statement released by CSOP on Sunday, starting from Tuesday, the fund can invest up to 49% of its net asset value (NAV) in options. The fund aims to achieve a daily investment return twice the performance of SK Hynix's stock.
This adjustment raises the options investment limit from the previous 40% to 49%. Just in May of this year, CSOP had raised this limit from 25% to 40%.
In other words, as SK Hynix's stock price continues to soar driven by AI and HBM (High Bandwidth Memory) demand, a large amount of funds have flowed into this 2x leveraged ETF. In order to maintain the product's leverage target and cope with the rapid expansion of the fund size, CSOP is gradually relaxing the percentage limits on the fund's use of options and other derivatives.
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