Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
Context: Over the past few trading days, <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> multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.</li>
<li>
Highlights: Strategies tend to have a short-term horizon, with approximately 40% of all strategies employing weekly options. Bearish views dominate with almost 70% of strategies being put spreads.</li>
<li>
Why read: This Insight breaks down complex option strategies and sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,</li>
</ul>



Context: Over the past few trading days, JD.com (9618 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.

Highlights: Strategies tend to have a short-term horizon, with approximately 40% of all strategies employing weekly options. Bearish views dominate with almost 70% of strategies being put spreads.

Why read: This Insight breaks down complex option strategies and sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,


JD.com (9618 HK / JD US): Top Option Trades Reveal Strong Bearish Sentiment

<ul>
<li>
Context: Volatility cones provide a straightforward framework to evaluate whether options are trading cheap or rich. This Insight provides volatility analysis for the Hang Seng and eight prominent Hong Kong stocks</li>
<li>
Highlight: With a dense earnings calendar ahead, volatility dispersion is widening — BYD trades rich into results, while Tencent and Xiaomi remain notably cheap relative to history.</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 the Hang Seng and eight prominent Hong Kong stocks

Highlight: With a dense earnings calendar ahead, volatility dispersion is widening — BYD trades rich into results, while Tencent and Xiaomi remain notably cheap relative to history.

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


Selective Volatility Picks Emerge Across HSI Stocks

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Dec 5th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Ubtech Robotics, Innovent Biologics, AIA, Trip.Com.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Dec 5th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Ubtech Robotics, Innovent Biologics, AIA, Trip.Com.


HK Short Interest Weekly: Ubtech Robotics, Innovent Biologics, AIA, Trip.Com

<ul>
<li>
<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> upcoming Q4 and Full Year 2024 results announcement on 6 March historically triggers significant stock volatility, with full-year announcements causing 12-14% price movements.</li>
<li>Options market pricing implies a 9.4% post-announcement move (up or down), which is less than previous full-year announcement reactions but nearly double the average quarterly announcement impact.</li>
<li>Long Straddle positions break even at 9.2% price movements, appearing expensive compared to quarterly announcement history but potentially profitable based on full-year announcement patterns.</li>
</ul>



JD.com (9618 HK) upcoming Q4 and Full Year 2024 results announcement on 6 March historically triggers significant stock volatility, with full-year announcements causing 12-14% price movements.
Options market pricing implies a 9.4% post-announcement move (up or down), which is less than previous full-year announcement reactions but nearly double the average quarterly announcement impact.
Long Straddle positions break even at 9.2% price movements, appearing expensive compared to quarterly announcement history but potentially profitable based on full-year announcement patterns.


JD.com (9618 HK) FY Earnings on 6 March: Divergence Between Option-Implied And Historic Move

<ul>
<li>Box trades are gaining popularity on the Hong Kong Stock Exchange. These arbitrage strategies exploit price discrepancies in options markets for near risk-free profits.</li>
<li>Long box trades involve simultaneously buying bull call spreads and bear put spreads with identical strikes and expiration dates, creating a fixed payoff regardless of the underlying asset's price movement.</li>
<li>Box trades require careful execution consideration of spreads, commissions, margins, and fees, with risks primarily in execution and operations rather than market exposure.</li>
</ul>


Box trades are gaining popularity on the Hong Kong Stock Exchange. These arbitrage strategies exploit price discrepancies in options markets for near risk-free profits.
Long box trades involve simultaneously buying bull call spreads and bear put spreads with identical strikes and expiration dates, creating a fixed payoff regardless of the underlying asset's price movement.
Box trades require careful execution consideration of spreads, commissions, margins, and fees, with risks primarily in execution and operations rather than market exposure.


Box Trades Explained: How Traders Execute Near Risk-Free Arbitrage in Hong Kong's Options Market

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com (ADR) (JD US)

JD.com (9618 HK / JD US): Top Option Trades Reveal Strong Bearish Sentiment

JD.com (9618 HK) option strategies mostly bearish with put spreads and short-term focus. Trade inspiration through breakdown of complex strategies...

Gaudenz Schneider

Selective Volatility Picks Emerge Across HSI Stocks

Rich vs. cheap volatility in Hong Kong’s top stocks: BYD trades rich, while Tencent and Xiaomi remain subdued, as options highlight growing...

Gaudenz Schneider

HK Short Interest Weekly: Ubtech Robotics, Innovent Biologics, AIA, Trip.Com

We analyzed the latest HK SFC report for aggregate short position as of Dec 5th and highlight short interest changes in Ubtech Robotics, Innovent...

Ke Yan, CFA, FRM

JD.com (9618 HK) FY Earnings on 6 March: Divergence Between Option-Implied And Historic Move

JD.com (9618 HK) Earnings Call tonight 8:00 pm HKT. After yesterday's 3.06% move up, the ATM strike is now 165. ATM Straddles offer an opportunity...

Gaudenz Schneider

Box Trades Explained: How Traders Execute Near Risk-Free Arbitrage in Hong Kong's Options Market

JD.com (9618 HK) Earnings Call tonight 8:00 pm HKT. After yesterday's 3.06% move up, the ATM strike is now 165. Straddles offer an opportunity to...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

JD.com (9618 HK / JD US): Top Option Trades Reveal Strong Bearish Sentiment

​JD.com (9618 HK) option strategies mostly bearish with put spreads and short-term focus. Trade inspiration through breakdown of complex strategies...

Gaudenz Schneider

Selective Volatility Picks Emerge Across HSI Stocks

Rich vs. cheap volatility in Hong Kong’s top stocks: BYD trades rich, while Tencent and Xiaomi remain subdued, as options highlight growing...

Gaudenz Schneider

HK Short Interest Weekly: Ubtech Robotics, Innovent Biologics, AIA, Trip.Com

We analyzed the latest HK SFC report for aggregate short position as of Dec 5th and highlight short interest changes in Ubtech Robotics, Innovent...

Ke Yan, CFA, FRM

JD.com (9618 HK) FY Earnings on 6 March: Divergence Between Option-Implied And Historic Move

JD.com (9618 HK) Earnings Call tonight 8:00 pm HKT. After yesterday's 3.06% move up, the ATM strike is now 165. ATM Straddles offer an opportunity...

Gaudenz Schneider

Box Trades Explained: How Traders Execute Near Risk-Free Arbitrage in Hong Kong's Options Market

JD.com (9618 HK) Earnings Call tonight 8:00 pm HKT. After yesterday's 3.06% move up, the ATM strike is now 165. Straddles offer an opportunity to...

Gaudenz Schneider

JD.com (9618 HK) option strategies mostly bearish with put spreads and short-term focus. Trade inspiration through breakdown of complex strategies...