Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
Discover sophisticated, live, multi-leg options strategies on <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, executed over the period from 5 June to 11 June on the Hong Kong exchange.</li>
<li>
Highlights: A range of strategies, spanning time-horizons from just a few days to several months. Including a low-cost call spread with the potential to return approximately 8x the invested premium.</li>
<li>
Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,</li>
</ul>



Discover sophisticated, live, multi-leg options strategies on Meituan (3690 HK), executed over the period from 5 June to 11 June on the Hong Kong exchange.

Highlights: A range of strategies, spanning time-horizons from just a few days to several months. Including a low-cost call spread with the potential to return approximately 8x the invested premium.

Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,


Meituan (3690 HK) Options: Unpacking the Top Trades of the Week

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Meituan reported (26 May) its 1Q25 results: revenue was RMB86.6bn, up 18% YoY, 1% higher than both our forecast and Bloomberg consensus estimate, while adj. NP reached RMB10.9bn, up 46% YoY, and was 12/13% higher than our forecast/consensus estimates.</li><li>The RMB13.5bn OP for the core local commerce (CLC) segment was 10% better than consensus, mainly attributable to the beat in OP of food delivery (FD) business aided by optimization in user subsidy, in our view.</li><li>Since competition is gearing up for the food delivery business, and industry players are deploying more resources to accelerate the development of instant retail business, Meituan is proactively responding and trading off short-term profitability to enhance user stickiness, to ride on the tide of accelerated industry penetration. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Meituan reported (26 May) its 1Q25 results: revenue was RMB86.6bn, up 18% YoY, 1% higher than both our forecast and Bloomberg consensus estimate, while adj. NP reached RMB10.9bn, up 46% YoY, and was 12/13% higher than our forecast/consensus estimates.The RMB13.5bn OP for the core local commerce (CLC) segment was 10% better than consensus, mainly attributable to the beat in OP of food delivery (FD) business aided by optimization in user subsidy, in our view.Since competition is gearing up for the food delivery business, and industry players are deploying more resources to accelerate the development of instant retail business, Meituan is proactively responding and trading off short-term profitability to enhance user stickiness, to ride on the tide of accelerated industry penetration. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Meituan (3690 HK) - Proactively Responding to Competition in Food Delivery Market

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>In 1Q25, total revenue grew by 18% YoY, with main businesses up by 20% YoY.</li>
<li>The operating margin rose by 3.6 ppt YoY by cutting every cost in 1Q25.</li>
<li>We expect EPS will grow by 37% in 2025 and the stock has an upside of 48%.</li>
</ul>


In 1Q25, total revenue grew by 18% YoY, with main businesses up by 20% YoY.
The operating margin rose by 3.6 ppt YoY by cutting every cost in 1Q25.
We expect EPS will grow by 37% in 2025 and the stock has an upside of 48%.


Meituan (3690 HK): 1Q25, Main Businesses Up by 20%

<ul>
<li>One-Month implied volatility for <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> has decreased from recent highs to around its three-year median, while realized volatility, a lagging indicator, remains significantly higher at the 87th percentile.</li>
<li>The term structure is flat, with May and June implied volatilities nearly identical, indicating no significant impact from the upcoming earnings announcement in early June.</li>
<li>Open interest is spread over the next nine months, with April calls concentrated at strikes 145 to 150 and deep out of the money calls at strikes 180 to 200.</li>
</ul>


One-Month implied volatility for Meituan (3690 HK) has decreased from recent highs to around its three-year median, while realized volatility, a lagging indicator, remains significantly higher at the 87th percentile.
The term structure is flat, with May and June implied volatilities nearly identical, indicating no significant impact from the upcoming earnings announcement in early June.
Open interest is spread over the next nine months, with April calls concentrated at strikes 145 to 150 and deep out of the money calls at strikes 180 to 200.


Meituan (3690 HK): Options Insights and Analysis, Skew Shift Amid Earnings Calm

<ul>
<li>Over the past five trading days, <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.</li>
<li>Long volatility strategies dominate, with the ratio of bearish vs. bullish positions approximately 2:1.</li>
<li>Diagonal Spreads account for 25% of all strategies and can make for near self-financing strategies. </li>
</ul>


Over the past five trading days, Meituan (3690 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
Long volatility strategies dominate, with the ratio of bearish vs. bullish positions approximately 2:1.
Diagonal Spreads account for 25% of all strategies and can make for near self-financing strategies. 


Meituan (3690 HK): Top Trades and Strategic Insights from HKEX Options Trading

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Meituan (3690 HK)

Meituan (3690 HK) Options: Unpacking the Top Trades of the Week

Discover live, multi-leg options strategies on Meituan (3690 HK) executed on the Hong Kong exchange, offering insights into market sentiment and...

Gaudenz Schneider

Meituan (3690 HK) - Proactively Responding to Competition in Food Delivery Market

Meituan reported (26 May) its 1Q25 results: revenue was RMB86.6bn, up 18% YoY, 1% higher than both our forecast and Bloomberg consensus estimate,...

CMB International

Meituan (3690 HK): 1Q25, Main Businesses Up by 20%

In 1Q25, total revenue grew by 18% YoY, with main businesses up by 20% YoY. The operating margin rose by 3.6 ppt YoY. We expect EPS will grow by...

Ming Lu

Meituan (3690 HK): Options Insights and Analysis, Skew Shift Amid Earnings Calm

Meituan's implied volatility has dropped to median levels, but realized volatility remains high. Flat term structure suggests little impact from...

Gaudenz Schneider

Meituan (3690 HK): Top Trades and Strategic Insights from HKEX Options Trading

Meituan's multi-leg option strategies show dominance of long volatility and 25% use of Diagonal Spreads, providing a variety of approaches in the...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Meituan (3690 HK) Options: Unpacking the Top Trades of the Week

​Discover live, multi-leg options strategies on Meituan (3690 HK) executed on the Hong Kong exchange, offering insights into market sentiment and...

Gaudenz Schneider

Meituan (3690 HK) - Proactively Responding to Competition in Food Delivery Market

Meituan reported (26 May) its 1Q25 results: revenue was RMB86.6bn, up 18% YoY, 1% higher than both our forecast and Bloomberg consensus estimate,...

CMB International

Meituan (3690 HK): 1Q25, Main Businesses Up by 20%

In 1Q25, total revenue grew by 18% YoY, with main businesses up by 20% YoY. The operating margin rose by 3.6 ppt YoY. We expect EPS will grow by...

Ming Lu

Meituan (3690 HK): Options Insights and Analysis, Skew Shift Amid Earnings Calm

​Meituan's implied volatility has dropped to median levels, but realized volatility remains high. Flat term structure suggests little impact from...

Gaudenz Schneider

Meituan (3690 HK): Top Trades and Strategic Insights from HKEX Options Trading

​Meituan's multi-leg option strategies show dominance of long volatility and 25% use of Diagonal Spreads, providing a variety of approaches in the...

Gaudenz Schneider

Discover live, multi-leg options strategies on Meituan (3690 HK) executed on the Hong Kong exchange, offering insights into market sentiment and...

Meituan's implied volatility has dropped to median levels, but realized volatility remains high. Flat term structure suggests little impact from...

Meituan's multi-leg option strategies show dominance of long volatility and 25% use of Diagonal Spreads, providing a variety of approaches in the...