Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

Ping An Insurance (H) / Equity Derivatives

<ul>
<li>
Context: Volatility cones provide a straightforward framework to evaluate whether options are trading cheap or rich. This Insight provides volatility analysis for eight prominent Hong Kong stocks</li>
<li>
Highlights: <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>stands out with historically low implied volatility across the term structure. <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 (9988 HK)</a>is rich in November and December contracts.</li>
<li>
Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.</li>
</ul>



Context: Volatility cones provide a straightforward framework to evaluate whether options are trading cheap or rich. This Insight provides volatility analysis for eight prominent Hong Kong stocks

Highlights: Ping An Insurance (H) (2318 HK)stands out with historically low implied volatility across the term structure. Alibaba (9988 HK)is rich in November and December contracts.

Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.


Volatility Cones: Ping An (2318 HK) And Alibaba (9988 HK) Stand Out

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

Rikki Malik

Commodities

<ul>
<li>A review of recent events/data impacting our investment themes and outlook</li>
<li>More government  deals in the critical minerals sector support our outlook</li>
<li>Grasberg mine accident and closure highlights tightness in the copper market</li>
</ul>


A review of recent events/data impacting our investment themes and outlook
More government  deals in the critical minerals sector support our outlook
Grasberg mine accident and closure highlights tightness in the copper market


Overview #36 - AI Hype, Mineral Might, and the Nuclear Revival

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.

<ul>
<li>There are multiple signs of overheating in Baidu trading including accelerating stock and option volumes.  </li>
<li>Skew has been driven higher by strong demand for up-strike Calls.</li>
<li>We recommend a hedge that tilts the odds in the holder’s favor while establishing the position at a credit.</li>
</ul>


There are multiple signs of overheating in Baidu trading including accelerating stock and option volumes.  
Skew has been driven higher by strong demand for up-strike Calls.
We recommend a hedge that tilts the odds in the holder’s favor while establishing the position at a credit.


Baidu (9888.HK): Overheated Trading and Skew Dynamics Highlight a Distinct Hedge Opportunity

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chery-automobile-co-ltd-3fd31c4e-aba6-43af-bdf8-c5a7af8cf9b2" target="_blank" data-smartkarma-citation="entities:44473:1" rel="noopener">Chery Automobile Co. Ltd. (9973 HK)</a>'s IPO range is HK$27.75-HK$30.75/share and will raise up to HK$10bn (US$1.3m) if the oversubscription option is exercised, valuing the company at HK$169bn (US$21.7bn).</li>
<li>The stock should be added to the HSCI Index in December and that will make the stock eligible for inclusion in Southbound Stock Connect.</li>
<li>There will be no inclusion in global indexes for the next year, but there is a possibility of inclusion in the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> in December.</li>
</ul>



Chery Automobile Co. Ltd. (9973 HK)'s IPO range is HK$27.75-HK$30.75/share and will raise up to HK$10bn (US$1.3m) if the oversubscription option is exercised, valuing the company at HK$169bn (US$21.7bn).
The stock should be added to the HSCI Index in December and that will make the stock eligible for inclusion in Southbound Stock Connect.
There will be no inclusion in global indexes for the next year, but there is a possibility of inclusion in the Hang Seng TECH Index (HSTECH INDEX) in December.


Chery Auto (9973 HK) IPO: No Inclusion in Global Indices; HSTECH Is Interesting

<ul>
<li>
Context: Volatility cones provide a straightforward framework to evaluate whether options are trading cheap or rich.</li>
<li>
Highlights: Implied volatility has broadly risen across most, but not all, HK stocks. Front-month expiries remain historically cheap amid a steepening curve. Opportunities endure, though fewer than in recent weeks.</li>
<li>
Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.</li>
</ul>



Context: Volatility cones provide a straightforward framework to evaluate whether options are trading cheap or rich.

Highlights: Implied volatility has broadly risen across most, but not all, HK stocks. Front-month expiries remain historically cheap amid a steepening curve. Opportunities endure, though fewer than in recent weeks.

Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.


Volatility Cones Spotlight Hedging in Tencent (700 HK) And More

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)

Volatility Cones: Ping An (2318 HK) And Alibaba (9988 HK) Stand Out

Volatility cones for eight prominent Hong Kong stocks highlight opportunities in cheap implied volatility in Ping An Insurance, Meituan, and...

Gaudenz Schneider

Overview #36 - AI Hype, Mineral Might, and the Nuclear Revival

A review of recent events/data impacting our investment themes and outlook. We look at recent news impacting commodities

Rikki Malik

Baidu (9888.HK): Overheated Trading and Skew Dynamics Highlight a Distinct Hedge Opportunity

Trading momentum and skew highlight overheating in Baidu, where a hedge can be structured to tilt odds toward the holder while entering at a credit.

John Ley

Chery Auto (9973 HK) IPO: No Inclusion in Global Indices; HSTECH Is Interesting

Chery Auto has reportedly priced the IPO at HK$30.75/share, the top end of the range. That will reduce the number of shares allocated to...

Brian Freitas

Volatility Cones Spotlight Hedging in Tencent (700 HK) And More

Tencent and other major HK stocks trade with historically low front-month volatility, offering potential hedging opportunities as the curve...

Gaudenz Schneider

Volatility Cones: Ping An (2318 HK) And Alibaba (9988 HK) Stand Out

​Volatility cones for eight prominent Hong Kong stocks highlight opportunities in cheap implied volatility in Ping An Insurance, Meituan, and...

Gaudenz Schneider

Overview #36 - AI Hype, Mineral Might, and the Nuclear Revival

A review of recent events/data impacting our investment themes and outlook. We look at recent news impacting commodities

Rikki Malik

Baidu (9888.HK): Overheated Trading and Skew Dynamics Highlight a Distinct Hedge Opportunity

Trading momentum and skew highlight overheating in Baidu, where a hedge can be structured to tilt odds toward the holder while entering at a credit.

John Ley

Chery Auto (9973 HK) IPO: No Inclusion in Global Indices; HSTECH Is Interesting

Chery Auto has reportedly priced the IPO at HK$30.75/share, the top end of the range. That will reduce the number of shares allocated to...

Brian Freitas

Volatility Cones Spotlight Hedging in Tencent (700 HK) And More

Tencent and other major HK stocks trade with historically low front-month volatility, offering potential hedging opportunities as the curve...

Gaudenz Schneider

Volatility cones for eight prominent Hong Kong stocks highlight opportunities in cheap implied volatility in Ping An Insurance, Meituan, and...