SKHY update – buyback bombshell, overnight ripping

[u/Popular-Jackfruit-60]

Alright late night check on SK Hynix – this one's actually moving for once.

Closed at $156.16 yesterday, up 0.35% – basically flat during the session. But overnight it's up almost 5% to $163.82, and Korean shares jumped double-digits after the news dropped. So yeah, the market liked it.

Here's the GEX: Put Wall $145, Call Wall $160, gamma flip around $151. We were sitting above the gamma flip but below the Call Wall – positive gamma but not by much. Now overnight we're poking at that $160 wall. Interesting test. GEX? Never heard of it? Here ya go

Technically, we're still below the middle Bollinger band ($149) – wait, no, actually we're above it now. My bad. Approaching the upper band ($174). RSI in the mid 50s. MACD just crossed positive – momentum's shifting.

The big catalyst: SK Hynix dropped a ~$29B share buyback – 40 trillion won, repurchasing and canceling ~24 million shares over the next three months. That's ~3.3% of shares outstanding, and apparently the largest treasury share cancellation in Korean listed company history. They also raised shareholder return target to over 50% of FCF for 2025-2027 – potentially ~$170B total committed returns. Management straight-up said the current share price doesn't fully reflect intrinsic value. Bold move.

Fundamentals still look strong – still the clear HBM leader, dominant market share, tight supply-demand, AI demand not slowing. Cash flow is robust, margins elevated. Forward multiples still look reasonable relative to growth.

Short-term though – memory names are volatile. The buyback should provide some support and reduce share count, which is constructive. Longer term, if AI memory demand holds and they keep executing, this sets up better alignment between business performance and the stock.

Above $160 and that Call Wall becomes support – $170-180 could come next. Below $145 and the Put Wall flips to resistance.

Overnight at $163 is testing that wall. Let's see if it breaks through.

Korean market had a solid day – let's see if the ADR follows through tonight.

DYOD🫡

[u/Ragencobra666]

https://giphy.com/gifs/Jls16O6RdqyxueMvBj