Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Familiar theme across a lot of names with prices either back to the lows of range over the last 2 months or having given back all of the stimulus gains.</li>
<li>Call volumes back to normal levels making up 57% of all single-stock trading. High volumes for Tencent did not repeat this weak as Tencent trading settled back to normal levels. </li>
<li>Materials were the strongest sector with the median stock rising just under 6%.</li>
</ul>


Familiar theme across a lot of names with prices either back to the lows of range over the last 2 months or having given back all of the stimulus gains.
Call volumes back to normal levels making up 57% of all single-stock trading. High volumes for Tencent did not repeat this weak as Tencent trading settled back to normal levels. 
Materials were the strongest sector with the median stock rising just under 6%.


EQD | Hong Kong Single Stock Options Weekly (January 13 – 17): Stocks at Inflection Point.

<ul>
<li>Abrupt change in course for HSI which bottomed on Monday and moved higher in a straight line the rest of the week. Price action was aided by stabilization in Tencent.</li>
<li>Implied vols were softer on the week and have a fairly large spread to historic vols. Caution warranted for long vol positions as this can persist with holidays dead ahead.  </li>
<li>Call volumes have rebounded to normal levels with the strong price action.</li>
</ul>


Abrupt change in course for HSI which bottomed on Monday and moved higher in a straight line the rest of the week. Price action was aided by stabilization in Tencent.
Implied vols were softer on the week and have a fairly large spread to historic vols. Caution warranted for long vol positions as this can persist with holidays dead ahead.  
Call volumes have rebounded to normal levels with the strong price action.


EQD | Hong Kong Index Options Weekly (HSI and HSCEI January 13-17): Long Vol Gets a Caution Flag

<ul>
<li>HSI and HSCEI were down every day this past week.</li>
<li>HSI total Put volume heavier than total Call volume on the two largest down days this week showing rising concern amongst investors.</li>
<li>Having dropped 5.6% to start the year HSI has already moved well past the implied move at the start of the month.</li>
</ul>


HSI and HSCEI were down every day this past week.
HSI total Put volume heavier than total Call volume on the two largest down days this week showing rising concern amongst investors.
Having dropped 5.6% to start the year HSI has already moved well past the implied move at the start of the month.


EQD | Hong Kong Index Options Weekly - HSI and HSCEI January 06 - 10

<ul>
<li>Tough start to the New Year, implied vols rose with market decline on the first day of the year. Both markets are now trading at or near peak open interest.</li>
<li>Volumes perked up, well ahead of the prior weeks levels with Calls still making up the bulk of trading in Hang Seng at 57% of all trades.</li>
<li>Looking ahead, January has historically been one of the most  volatile months of the year for HSI, trailing only October for average historic volatility.</li>
</ul>


Tough start to the New Year, implied vols rose with market decline on the first day of the year. Both markets are now trading at or near peak open interest.
Volumes perked up, well ahead of the prior weeks levels with Calls still making up the bulk of trading in Hang Seng at 57% of all trades.
Looking ahead, January has historically been one of the most  volatile months of the year for HSI, trailing only October for average historic volatility.


EQD | Hong Kong Index Options Weekly - HSI and HSCEI Dec 30 – Jan 03

Derivatives and Quantitative Strategist

Gaudenz Schneider

Event-Driven

<ul>
<li>This Insight analyzes <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> tailor-made option strategies over the last five trading days, providing strategy analysis, trends, highlights, and volatility context.</li>
<li>Despite the holidays and generally low volume, last week saw some interesting strategies traded.</li>
<li>The highest premium earned was for a January '25 Butterfly. The largest trade was a January '25 Bull Call Spread, reflecting the popularity of long volatility strategies and spreads.</li>
</ul>


This Insight analyzes Hang Seng Index (HSI INDEX) tailor-made option strategies over the last five trading days, providing strategy analysis, trends, highlights, and volatility context.
Despite the holidays and generally low volume, last week saw some interesting strategies traded.
The highest premium earned was for a January '25 Butterfly. The largest trade was a January '25 Bull Call Spread, reflecting the popularity of long volatility strategies and spreads.


Hang Seng (HSI Index) - This Butterfly Gives You Wings: Popular Option Strategies and Top Trades

Hong Kong

The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. The components of the index are divided into four subindices: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 as of July 31, 1964.

Hang Seng Index (HSI INDEX)

EQD | Hong Kong Single Stock Options Weekly (January 13 – 17): Stocks at Inflection Point.

A number of single stocks have seen their prices either return to lows of the past 2 months or have lost all of their stimulus gains. Option...

John Ley

EQD | Hong Kong Index Options Weekly (HSI and HSCEI January 13-17): Long Vol Gets a Caution Flag

HSI saw a sudden upward trend, supported by Tencent's stability. Implied vols softer with caution warranted for long vol positions due to evolving...

John Ley

EQD | Hong Kong Index Options Weekly - HSI and HSCEI January 06 - 10

HSI and HSCEI experienced a downward trend all week, with heavier Put volume than Call volume on major down days, indicating growing investor...

John Ley

EQD | Hong Kong Index Options Weekly - HSI and HSCEI Dec 30 – Jan 03

Implied vols rose with market decline on New Year's Day, Hang Seng and HSCEI both trading at peak open interest. January historically a volatile...

John Ley

Hang Seng (HSI Index) - This Butterfly Gives You Wings: Popular Option Strategies and Top Trades

Analysis of Hang Seng Index option strategies in the past week reveals interesting trends, with long volatility strategies and spreads being...

Gaudenz Schneider

EQD | Hong Kong Single Stock Options Weekly (January 13 – 17): Stocks at Inflection Point.

​A number of single stocks have seen their prices either return to lows of the past 2 months or have lost all of their stimulus gains. Option...

John Ley

EQD | Hong Kong Index Options Weekly (HSI and HSCEI January 13-17): Long Vol Gets a Caution Flag

​HSI saw a sudden upward trend, supported by Tencent's stability. Implied vols softer with caution warranted for long vol positions due to evolving...

John Ley

EQD | Hong Kong Index Options Weekly - HSI and HSCEI January 06 - 10

​HSI and HSCEI experienced a downward trend all week, with heavier Put volume than Call volume on major down days, indicating growing investor...

John Ley

EQD | Hong Kong Index Options Weekly - HSI and HSCEI Dec 30 – Jan 03

​Implied vols rose with market decline on New Year's Day, Hang Seng and HSCEI both trading at peak open interest. January historically a volatile...

John Ley

Hang Seng (HSI Index) - This Butterfly Gives You Wings: Popular Option Strategies and Top Trades

​Analysis of Hang Seng Index option strategies in the past week reveals interesting trends, with long volatility strategies and spreads being...

Gaudenz Schneider

A number of single stocks have seen their prices either return to lows of the past 2 months or have lost all of their stimulus gains. Option...

HSI saw a sudden upward trend, supported by Tencent's stability. Implied vols softer with caution warranted for long vol positions due to evolving...

HSI and HSCEI experienced a downward trend all week, with heavier Put volume than Call volume on major down days, indicating growing investor...

Implied vols rose with market decline on New Year's Day, Hang Seng and HSCEI both trading at peak open interest. January historically a volatile...

Analysis of Hang Seng Index option strategies in the past week reveals interesting trends, with long volatility strategies and spreads being...