Futu and Tiger Securities put options surge before penalty announcement

KuCoinFlash

Release Time: 05/23/2026 10:16:06

Summary

Futu and Tiger Securities experienced a sharp increase in put options trading in the options market ahead of China’s CSRC penalty announcement on May 22. Data from May 21 revealed unusual put activity for FUTU and TIGR, with a high put/call ratio observed for Futu’s May 22 expiration. This pre-announcement positioning may have influenced the Fear & Greed Index, with some speculating about insider trading or coordinated shorting.

BlockBeats report: On May 23, according to publicly available options data platforms and market information, prior to the China Securities Regulatory Commission's announcement on May 22 of its intention to impose administrative penalties on cross-border internet brokers such as Futu and Tiger Brokers, the trading volumes of put options for Futu and Tiger-related U.S. stocks surged abnormally on May 7, 19, and 21.

Trading volume peaked before the official announcement; at 9:57 a.m. Eastern Time on May 21, StreetInsider flagged unusual put options activity in FUTU and TIGR. ThetaOwl data also showed a significantly elevated Put/Call volume ratio for FUTU options expiring on May 22 on May 21.

Some market participants believe the aforementioned fluctuations may indicate that funds had already positioned themselves short before the announcement, raising concerns about front-running or insider trading.

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