Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> one-month implied volatility has decreased from recent peaks but remains above the 70th percentile, while realized volatility exceeds 80% (96th percentile).</li>
<li>A relatively flat term structure and skew render Calendar and Diagonal Spreads interesting strategies.</li>
<li>Open interest extends to March 2026, with balanced call and put interest across all expiries.</li>
</ul>



Alibaba Group Holding (9988 HK) one-month implied volatility has decreased from recent peaks but remains above the 70th percentile, while realized volatility exceeds 80% (96th percentile).
A relatively flat term structure and skew render Calendar and Diagonal Spreads interesting strategies.
Open interest extends to March 2026, with balanced call and put interest across all expiries.


Alibaba (9988 HK): Volatility Surface Favoring Diagonal and Calendar Spreads

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>A review of recent events/data impacting our investment themes or outlook</li>
<li>Time to start unpacking your shorts for the summer season</li>
<li>Headlines should not distract from the big picture and provide  trading opportunities </li>
</ul>


A review of recent events/data impacting our investment themes or outlook
Time to start unpacking your shorts for the summer season
Headlines should not distract from the big picture and provide  trading opportunities 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi's (1810 HK)</a> one-month implied volatility has decreased from recent peaks but remains above the 90th percentile, while realized volatility is exceptionally high, exceeding 100% (100th percentile).</li>
<li>The options market exhibits an inverted term structure (backwardation) favoring calendar or diagonal spreads, with a slightly negatively sloped skew supporting put and call spreads.</li>
<li>Open interest extends to March 2026, with balanced call and put interest across most expiries, except for March 2026, which is heavily call-dominated.</li>
</ul>



Xiaomi's (1810 HK) one-month implied volatility has decreased from recent peaks but remains above the 90th percentile, while realized volatility is exceptionally high, exceeding 100% (100th percentile).
The options market exhibits an inverted term structure (backwardation) favoring calendar or diagonal spreads, with a slightly negatively sloped skew supporting put and call spreads.
Open interest extends to March 2026, with balanced call and put interest across most expiries, except for March 2026, which is heavily call-dominated.


Xiaomi Corp (1810 HK): Volatility Insights and Analysis Identify Spread Opportunities

<ul>
<li>Over the past five trading days, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener"><strong>Xiaomi</strong> Corp (1810 HK)</a> multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.</li>
<li>Bearish and Bullish strategies balance each other, with only 12% of trades expressing a neutral view, such as Iron Condors. Some strategies were traded in unusually large size.</li>
<li>Diagonal Spreads account for over 25% of all strategies and can make for near self-financing strategies. An inverted volatility term structure, aka backwardation, supports calendar and diagonal spreads.</li>
</ul>


Over the past five trading days, Xiaomi Corp (1810 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
Bearish and Bullish strategies balance each other, with only 12% of trades expressing a neutral view, such as Iron Condors. Some strategies were traded in unusually large size.
Diagonal Spreads account for over 25% of all strategies and can make for near self-financing strategies. An inverted volatility term structure, aka backwardation, supports calendar and diagonal spreads.


Xiaomi Corp (1810 HK): Top Trades and Strategic Insights from HKEX Options Trading

<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

Hong Kong

The Hang Seng TECH Index aims to represent the 30 largest technology companies listed in Hong Kong which have high business exposure to the Innovative Tech Themes.

Hang Seng TECH Index (HSTECH INDEX EQUITY)

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Hang Seng TECH Index (HSTECH INDEX EQUITY)

Alibaba (9988 HK): Volatility Surface Favoring Diagonal and Calendar Spreads

Alibaba's volatility remains high, making Calendar and Diagonal Spreads attractive strategies. Open interest extends to 2026 with balanced call...

Gaudenz Schneider

Overview#24 – Exiting No Man’s Land

A review of recent events/data impacting our investment themes and outlook. What are bond and currency markets telling us about the equity markets?

Rikki Malik

Xiaomi Corp (1810 HK): Volatility Insights and Analysis Identify Spread Opportunities

Xiaomi's implied and realized volatility remains high with the options market showing opportunities for calendar spreads and diagonal spreads.

Gaudenz Schneider

Xiaomi Corp (1810 HK): Top Trades and Strategic Insights from HKEX Options Trading

Xiaomi Corp's multi-leg option strategies show diverse approaches with a mix of bullish and bearish trades, including large trades and self...

Gaudenz Schneider

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Alibaba (9988 HK): Volatility Surface Favoring Diagonal and Calendar Spreads

​Alibaba's volatility remains high, making Calendar and Diagonal Spreads attractive strategies. Open interest extends to 2026 with balanced call...

Gaudenz Schneider

Overview#24 – Exiting No Man’s Land

A review of recent events/data impacting our investment themes and outlook. What are bond and currency markets telling us about the equity markets?

Rikki Malik

Xiaomi Corp (1810 HK): Volatility Insights and Analysis Identify Spread Opportunities

​Xiaomi's implied and realized volatility remains high with the options market showing opportunities for calendar spreads and diagonal spreads.

Gaudenz Schneider

Xiaomi Corp (1810 HK): Top Trades and Strategic Insights from HKEX Options Trading

​Xiaomi Corp's multi-leg option strategies show diverse approaches with a mix of bullish and bearish trades, including large trades and self...

Gaudenz Schneider

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

Alibaba's volatility remains high, making Calendar and Diagonal Spreads attractive strategies. Open interest extends to 2026 with balanced call...

Xiaomi's implied and realized volatility remains high with the options market showing opportunities for calendar spreads and diagonal spreads.

Xiaomi Corp's multi-leg option strategies show diverse approaches with a mix of bullish and bearish trades, including large trades and self...

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