Puts and calls in the 13F: how to read a manager's options
A call gains if the stock rises; a put if it falls. In the 13F they are reported at the value of the underlying shares (notional), not the premium paid.
Why the figures look huge
If a manager buys puts on a million shares at US$ 100, the 13F says US$ 100 million even if it paid, say, US$ 5 million in premium. Headlines like “bets US$ 900 million against…” usually quote the notional.
What the 13F does not say
It does not report strike or expiry, and a put may hedge stock the fund owns rather than be a bet. That is why on GestorLens options are shown separately and not added to the portfolio.
Frequently asked questions
Does a large put mean the manager expects a fall?
Not necessarily: it may be a hedge. Look at it together with the rest of the portfolio.