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>A weekly roundup of key option and price metrics for Hong Kong single stocks.</li>
<li>Option volumes on par with the lowest levels seen over the past 6 months.</li>
<li>Implied volatility appears to have broadly settled around current levels.</li>
</ul>


A weekly roundup of key option and price metrics for Hong Kong single stocks.
Option volumes on par with the lowest levels seen over the past 6 months.
Implied volatility appears to have broadly settled around current levels.


Hong Kong Single Stock Options Weekly (June 02 – 06): Broad Gains as Option Activity Fades

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

<ul>
<li>After a 7-week rally the <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> last week gave up and close the week down (CC=-1 on our WEEKLY LONG model).</li>
<li>The pullback continued on  Monday, reaching 22668 and in our WEEKLY LONG model this price support zone is oversold.</li>
<li>The pullback may continue, so in this insight we are going to offer some perspective on possible support zones where to buy. We think this setback is a buy opportunity.</li>
</ul>


After a 7-week rally the Hang Seng Index (HSI INDEX) last week gave up and close the week down (CC=-1 on our WEEKLY LONG model).
The pullback continued on  Monday, reaching 22668 and in our WEEKLY LONG model this price support zone is oversold.
The pullback may continue, so in this insight we are going to offer some perspective on possible support zones where to buy. We think this setback is a buy opportunity.


<ul>
<li>HSI traded sideways for a third straight week as macro headlines swirled and tariffs turned internally litigious.</li>
<li>Volatility drifted lower, with 1M implied vol dropping below its 1-year median for the first time in months.</li>
<li>Call volumes were significantly higher led by one strike in particular.</li>
</ul>


HSI traded sideways for a third straight week as macro headlines swirled and tariffs turned internally litigious.
Volatility drifted lower, with 1M implied vol dropping below its 1-year median for the first time in months.
Call volumes were significantly higher led by one strike in particular.


HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All

<ul>
<li>In our <a href="https://www.smartkarma.com/insights/hang-seng-index-faf-calculation-change-buy-the-dip" target="_blank" rel="noopener">previous insight</a> we highlighted a buy-the-dip opportunity in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI INDEX</a> in the HSI Index during the late-March pullback. However, Trump’s tariff announcement dramatically shifted the outlook.</li>
<li>Following a sharp drop to 19260, the <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</a> staged a fierce rally to 21000—but momentum has since stalled.</li>
<li>The index has rallied for three straight weeks (including this one), but remains below key resistance levels. Our model signals weakness, and a likely pullback ahead.
</li>
</ul>


In our previous insight we highlighted a buy-the-dip opportunity in the HSI INDEX in the HSI Index during the late-March pullback. However, Trump’s tariff announcement dramatically shifted the outlook.
Following a sharp drop to 19260, the Hang Seng Index staged a fierce rally to 21000—but momentum has since stalled.
The index has rallied for three straight weeks (including this one), but remains below key resistance levels. Our model signals weakness, and a likely pullback ahead.



HSI Tactical Outlook: Fading Momentum Signals Pullback Risk

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899" rel="noopener">Hang Seng Index (HSI INDEX)</a>, <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY)</a> and <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909" rel="noopener">Nikkei 225 (NKY INDEX)</a> all have elevated implied vols vs their peers and vs historical observations for October.</li>
<li>
<a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617" rel="noopener">NIFTY Index (NIFTY INDEX)</a> , <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a>  implied vols are on the low end of what is typically realized in October.</li>
<li>Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.</li>
</ul>



Hang Seng Index (HSI INDEX), Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY) and Nikkei 225 (NKY INDEX) all have elevated implied vols vs their peers and vs historical observations for October.

NIFTY Index (NIFTY INDEX) , S&amp;P 500 INDEX (SPX INDEX) and S&amp;P/ASX 200 (AS51 INDEX)  implied vols are on the low end of what is typically realized in October.
Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.


EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

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)

Hong Kong Single Stock Options Weekly (June 02 – 06): Broad Gains as Option Activity Fades

Weekly roundup of key metrics shows low option volumes and stable implied volatility for Hong Kong single stocks and broad participation.

John Ley

HSI Tactical Outlook: Buy This Dip

After a 7-week rally, the Hang Seng Index closed down last week, reaching an oversold price support zone of 22668. According to our models this...

Nico Rosti

HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All

HSI traded sideways amid macro headlines and internal tariff disputes, while volatility decreased and call volumes surged, driven by one specific...

John Ley

HSI Tactical Outlook: Fading Momentum Signals Pullback Risk

After crashing following Trump's tariff announcement in early April, the HSI index rallied back very strongly, but momentum stalled. Our model...

Nico Rosti

EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...

John Ley

Hong Kong Single Stock Options Weekly (June 02 – 06): Broad Gains as Option Activity Fades

​Weekly roundup of key metrics shows low option volumes and stable implied volatility for Hong Kong single stocks and broad participation.

John Ley

HSI Tactical Outlook: Buy This Dip

​After a 7-week rally, the Hang Seng Index closed down last week, reaching an oversold price support zone of 22668. According to our models this...

Nico Rosti

HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All

​HSI traded sideways amid macro headlines and internal tariff disputes, while volatility decreased and call volumes surged, driven by one specific...

John Ley

HSI Tactical Outlook: Fading Momentum Signals Pullback Risk

After crashing following Trump's tariff announcement in early April, the HSI index rallied back very strongly, but momentum stalled. Our model...

Nico Rosti

EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

​Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...

John Ley

Weekly roundup of key metrics shows low option volumes and stable implied volatility for Hong Kong single stocks and broad participation.

After a 7-week rally, the Hang Seng Index closed down last week, reaching an oversold price support zone of 22668. According to our models this...

HSI traded sideways amid macro headlines and internal tariff disputes, while volatility decreased and call volumes surged, driven by one specific...

Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...