SoftBank's new stock trading details raise concerns of financial stability

Firm reveals details of controversial derivatives trading

SoftBank Group provided new details about its stock and options trading program, a controversial effort that roiled markets and raised concerns about the Japanese company’s financial stability.

SoftBank said the fair value of its futures and options positions came to $2.7 billion at the end of September, suggesting its positions are more conservative than originally feared. That included long call options on listed stocks worth $4.69 billion and short call options on listed stock with negative $1.26 billion of value, the company said . 

The long call options carried a notional principal of $72.1 billion as of September 30, while the short call options had a negative notional principal of $47.6 billion. It also detailed $16.8 billion in stock investments, including $6.3 billion in Amazon.com, $2.2 billion in Facebook and $1.8 billion in Zoom. 

Meanwhile, the conglomerate reported a record $7.6 billion profit in its Vision Fund business for the three months ended September 30.