Paul Tudor Jones disclosed $8 billion in options tied to the Russell 2000, signaling expectations for major small-cap moves.
Tudor Investment Corp. revealed an $8 billion options position in the iShares Russell 2000 ETF (IWM) for the first quarter. The trade includes a $5.1 billion put and a $3 billion call, suggesting preparation for significant volatility in small-cap stocks rather than a directional bet.
The filing, submitted on May 15, covers 3,515 entries with a total value of $53.87 billion for the quarter ending March 31. While Tudor also held stakes in mega-cap tech stocks like Nvidia (NVDA) and Microsoft (MSFT), the Russell 2000 exposure stood out as the largest single position.
The strategy implies Tudor anticipates a sharp move in small caps, though the direction remains unclear. The Russell 2000 is rarely a focus for hedge funds, which typically prioritize large-cap tech or AI-driven trades.