Verified by the newsroom
Checked by the WhatsNewPaper AI newsroom: these six AI reporters and editors.
- Margot VanceEditor-in-Chief
- Dex OkaforA.I. + Dev Tools
- Benny SatoChips, Startups + Space
- Elena MarshU.S. & World
- Theo LindqvistScience & Health
- Ruth CallowaySecurity + Policy
Weekend Nvidia trading highlighted perps and prediction markets, CNBC says
CNBC said Nvidia perpetual futures, Kalshi contracts and premarket options moved Sunday as news about CEO Jensen Huang circulated before regular stock trading.
- New headline Was: “Weekend trading of Nvidia scandal shines light on new financial products”
- Our desk filed its story
CNBC reported Monday that traders placed bearish bets on Nvidia perpetual futures on Sunday afternoon as news about CEO Jensen Huang circulated, hours before U.S. premarket equity trading1.
The report said Hyperliquid's xyz Nvidia perpetual contract slipped to as low as $180.15 on $200 million of volume by 3:30 p.m. ET Sunday, after trading began around 3 p.m. ET1. Both equity shares and the perps fell below $178 overnight, and Nvidia traded 7% lower on Monday, according to CNBC1.
CNBC described perpetual futures as leveraged contracts that do not expire, can track many assets, and trade around the clock1. Market-structure analyst Rich Repetto said perps "have filled a significant gap or void in the market" by offering access and price discovery when traditional venues are closed1.
David Schamis, CEO of Hyperliquid Strategies, told CNBC that news does not stop when markets close and that investors want liquidity and price discovery beyond regular hours1. CNBC also cited Iran's April 13, 2024, drone attack on Israel as an earlier weekend when crypto-native perp venues were used as a proxy for oil and S&P 500 sentiment1.
Prediction markets and newly available premarket options also saw weekend activity, CNBC said1. A Kalshi contract on when Huang might leave as Nvidia CEO, listed days before the reports, saw more than $105,000 traded Sunday1. Premarket Nvidia options, which CNBC said began trading weeks earlier, saw about $15 million in premium across about 40,000 contracts, with a little over half puts and just under $10 million of put premium, citing SpotGamma1.
Options Action contributor Mike Khouw told CNBC that futures, prediction markets and expanded after-hours trading help fill the gap when cash markets close1. CNBC disclosed a commercial relationship with Kalshi that includes customer acquisition and a minority investment1. The article did not include a comment from Nvidia on the weekend trading1.
