Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
Context: Volatility cones provide a clear framework to evaluate whether options are trading cheap or rich.</li>
<li>
Highlights: Major stocks, including <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi (1810 HK)</a>, and <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, trade at historically cheap implied volatility. Upcoming earnings are starting to be reflected in November IV.</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 clear framework to evaluate whether options are trading cheap or rich.

Highlights: Major stocks, including Tencent (700 HK), Xiaomi (1810 HK), and Meituan (3690 HK), trade at historically cheap implied volatility. Upcoming earnings are starting to be reflected in November IV.

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: Spotting Opportunities in Tencent, JD.com, Ping An & More

<ul>
<li>
Context: Volatility cones provide a clear framework to evaluate whether options are trading cheap or rich.</li>
<li>
Highlights:<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC (5 HK),</a><a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <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 (2318 HK)</a>, and <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> all display historically cheap implied volatility. Read on for trade suggestions.</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 clear framework to evaluate whether options are trading cheap or rich.

Highlights:Tencent (700 HK), HSBC (5 HK),Meituan (3690 HK), Ping An (2318 HK), and JD.com (9618 HK) all display historically cheap implied volatility. Read on for trade suggestions.

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


Cheap Vs. Rich Volatility: What Cones Reveal in Tencent, HSBC, Meituan & More

<ul>
<li>
Context: Volatility cones chart implied volatility against historical percentiles across the term structure, providing a clear framework to evaluate whether options are trading cheap or rich.</li>
<li>
Highlight: Several high-profile HK stocks currently show historically cheap implied volatility. With some of them trading near 52-week highs, now may be an opportune time to hedge.</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 chart implied volatility against historical percentiles across the term structure, providing a clear framework to evaluate whether options are trading cheap or rich.

Highlight: Several high-profile HK stocks currently show historically cheap implied volatility. With some of them trading near 52-week highs, now may be an opportune time to hedge.

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: Opportunities Across 8 Hong Kong Stocks

<ul>
<li>
Context: Index heavyweight <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC (5 HK)</a> / <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc-a723bd63-0890-486f-aaa0-3bb9ad2b95ce" target="_blank" data-smartkarma-citation="entities:21976:1" rel="noopener">HSBC (HSBA LN)</a> is set to report Interim Results 2025 on 30 July at 12:00 HKT — during the Hong Kong trading lunch break.</li>
<li>
Expected Move: Historical data reveals <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC</a>'s announcement-day moves are significantly larger than average, with options currently pricing in a remarkably aligned ± 2.2% implied move.</li>
<li>
Actionable Strategies: Understand the potential for amplified volatility and explore actionable option strategies leveraging the distinctive term structure around earnings.</li>
</ul>



Context: Index heavyweight HSBC (5 HK) / HSBC (HSBA LN) is set to report Interim Results 2025 on 30 July at 12:00 HKT — during the Hong Kong trading lunch break.

Expected Move: Historical data reveals HSBC's announcement-day moves are significantly larger than average, with options currently pricing in a remarkably aligned ± 2.2% implied move.

Actionable Strategies: Understand the potential for amplified volatility and explore actionable option strategies leveraging the distinctive term structure around earnings.


HSBC (5 HK) Earnings on 30 July: Price Action and Option Strategies

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Equity Capital Markets

<ul>
<li>2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. In 2024, IPO volumes were mainly driven by India, even as Hong Kong showed signs of turning a corner.</li>
<li>We ended 2024 with an accuracy rate of 79.4% across 68 IPOs that we covered and 68.8% across 109 placements.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. In 2024, IPO volumes were mainly driven by India, even as Hong Kong showed signs of turning a corner.
We ended 2024 with an accuracy rate of 79.4% across 68 IPOs that we covered and 68.8% across 109 placements.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

United Kingdom

HSBC Holdings plc is a British universal bank and financial services group that provides banking and financial products and services worldwide. It offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking. The company was founded in 1865 and is headquartered in London, United Kingdom.

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HSBC (HSBC US)

Volatility Cones: Spotting Opportunities in Tencent, JD.com, Ping An & More

Tencent, HSBC, Meituan, JD.com, Ping An, and Xiaomi trade below the 10th percentile for one-month implied volatility, highlighting potential...

Gaudenz Schneider

Cheap Vs. Rich Volatility: What Cones Reveal in Tencent, HSBC, Meituan & More

Volatility cones help identify cheap options trading opportunities in Tencent, HSBC, Meituan, Ping An, and JD.com, providing actionable insights...

Gaudenz Schneider

Volatility Cones: Opportunities Across 8 Hong Kong Stocks

Spot opportunities and manage risk in HK stocks reporting soon: Meituan (27 Aug), Ping An Ins. (27 Aug), Alibaba (29 Aug), BYD (29 Aug). Several...

Gaudenz Schneider

HSBC (5 HK) Earnings on 30 July: Price Action and Option Strategies

HSBC (5 HK) reports results today at 12:00 HKT. Since the original publication, the stock has barely moved, but near-term option implied volatility...

Gaudenz Schneider

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. We had an accuracy rate of 79.4% for IPOs and 68.8% for placements in...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Volatility Cones: Spotting Opportunities in Tencent, JD.com, Ping An & More

Tencent, HSBC, Meituan, JD.com, Ping An, and Xiaomi trade below the 10th percentile for one-month implied volatility, highlighting potential...

Gaudenz Schneider

Cheap Vs. Rich Volatility: What Cones Reveal in Tencent, HSBC, Meituan & More

​Volatility cones help identify cheap options trading opportunities in Tencent, HSBC, Meituan, Ping An, and JD.com, providing actionable insights...

Gaudenz Schneider

Volatility Cones: Opportunities Across 8 Hong Kong Stocks

Spot opportunities and manage risk in HK stocks reporting soon: Meituan (27 Aug), Ping An Ins. (27 Aug), Alibaba (29 Aug), BYD (29 Aug). Several...

Gaudenz Schneider

HSBC (5 HK) Earnings on 30 July: Price Action and Option Strategies

HSBC (5 HK) reports results today at 12:00 HKT. Since the original publication, the stock has barely moved, but near-term option implied volatility...

Gaudenz Schneider

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. We had an accuracy rate of 79.4% for IPOs and 68.8% for placements in...

Sumeet Singh

Volatility cones help identify cheap options trading opportunities in Tencent, HSBC, Meituan, Ping An, and JD.com, providing actionable insights...