Futu, Up Fintech Options Surged Before Crackdown Sparked Slump

Trading in US-listed options on Futu Holdings Ltd. and Up Fintech Holding Ltd.surged just before China’s regulator’s announcement that it planned to penalize them triggered a record share slump.

Put option volume in Futu’s American Depositary Receipts jumped on Thursday to the highest level since October 2024, roughly four times the 20-day average, according to data compiled by Bloomberg. Its peer Up Fintech, which owns Tiger Brokers, saw a similar surge.

The plunge in share prices leaves investors who bought the puts sitting on huge paper profits. Take Futu $112.45 puts expiring May 22, which on Thursday traded more ...