Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>NPS’s aggressive net buying over the past four months? Just a 3% buffer rebalance—not some structural bullish call on K-stocks.</li>
<li>Street intel points to NPS capping buys in the low-14% range, 1%p below target, only defending against dips. With short selling back on from March 31, further buying looks unlikely.</li>
<li>With NPS stepping back and retail still weak, no real size remains on the buy side. Short flow could hit harder than expected—time to price it in and adjust positioning.</li>
</ul>


NPS’s aggressive net buying over the past four months? Just a 3% buffer rebalance—not some structural bullish call on K-stocks.
Street intel points to NPS capping buys in the low-14% range, 1%p below target, only defending against dips. With short selling back on from March 31, further buying looks unlikely.
With NPS stepping back and retail still weak, no real size remains on the buy side. Short flow could hit harder than expected—time to price it in and adjust positioning.


Street Intel on NPS's Buy Flow—the Key Swing Factor as Korea's Short-Selling Comeback

Equity Capital Markets

Korea Stock Exchange KOSPI 200 / Equity Capital Markets

<ul>
<li>The odds of the cornerstone system getting the green light are significantly higher than they were two years ago.</li>
<li>With bills typically taking a year to kick in, we need to stay on this—if all goes smoothly, cornerstone investors could hit Korean IPOs as early as next year.</li>
<li>In the early stages, cornerstone allocations will be key to shaping our IPO trading playbook. Staying ahead of these shifts is crucial.</li>
</ul>


The odds of the cornerstone system getting the green light are significantly higher than they were two years ago.
With bills typically taking a year to kick in, we need to stay on this—if all goes smoothly, cornerstone investors could hit Korean IPOs as early as next year.
In the early stages, cornerstone allocations will be key to shaping our IPO trading playbook. Staying ahead of these shifts is crucial.


Korean IPOs: Cornerstone Bill Back in Play—This Time, It Might Stick

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

<ul>
<li>The United States' tariff against Mexico and Canada, effective March 4, 2025, could disrupt global markets, with potential volatility spikes similar to early February's events.</li>
<li>
<a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200</a> and <a href="https://www.smartkarma.com/entities/ftse-100-index-ukx" target="_blank" data-smartkarma-citation="entities:22904:1" rel="noopener">FTSE 100</a>: low implied volatility offers opportunities for protective puts, </li>
<li>
<a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> and <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225</a>: an volatility premium suggests a relative value volatility arbitrage play. </li>
</ul>


The United States' tariff against Mexico and Canada, effective March 4, 2025, could disrupt global markets, with potential volatility spikes similar to early February's events.

S&amp;P/ASX 200 and FTSE 100: low implied volatility offers opportunities for protective puts, 

KOSPI 200 and Nikkei 225: an volatility premium suggests a relative value volatility arbitrage play. 


Global Option Implied Volatility - Opportunities in S&P/ASX 200, KOSPI 200, Nikkei 225, FTSE 100.

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>After eight consecutive days of gains, the Kospi rally paused in the last two sessions, closing just above 350.</li>
<li>The 350 area aligns with several key levels from the past three years.</li>
<li>For those looking to hedge recent gains, we recommend two preferred hedge strategies.</li>
</ul>


After eight consecutive days of gains, the Kospi rally paused in the last two sessions, closing just above 350.
The 350 area aligns with several key levels from the past three years.
For those looking to hedge recent gains, we recommend two preferred hedge strategies.


Kospi Index Options Weekly (Feb 17 – 21): Hedge Considerations as Rally Stalls at 350

<ul>
<li>The Bank of Korea is expected to cut interest rates to 2.75% on 25 February 2025. The decision, however, is not expected to be unanimous and some analysts argue against.</li>
<li>Historical data from 120 BoK announcements and subsequent moves in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)</a> is examined.</li>
<li>Options market pricing seems to lean toward a "surprise and no-change" outcome. Traders can seek opportunities with short straddles or long puts depending on anticipated outcomes.</li>
</ul>


The Bank of Korea is expected to cut interest rates to 2.75% on 25 February 2025. The decision, however, is not expected to be unanimous and some analysts argue against.
Historical data from 120 BoK announcements and subsequent moves in the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY) is examined.
Options market pricing seems to lean toward a "surprise and no-change" outcome. Traders can seek opportunities with short straddles or long puts depending on anticipated outcomes.


KOSPI 200 - Upcoming BOK Rate Decision: Navigating Market Moves and Profit Opportunities

South Korea

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Street Intel on NPS's Buy Flow—the Key Swing Factor as Korea's Short-Selling Comeback

This post delivers key market intel on NPS’s buy flow—the biggest swing factor in Korea’s short-selling comeback set for late March.

Sanghyun Park

Korean IPOs: Cornerstone Bill Back in Play—This Time, It Might Stick

Cornerstone system proposed for Korean IPOs today: Higher chances of passage this time – impact analysis on our IPO trading playbook

Sanghyun Park

Global Option Implied Volatility - Opportunities in S&P/ASX 200, KOSPI 200, Nikkei 225, FTSE 100.

US tariffs on Mexico and Canada effective 4 March as a potentially adverse market event. S&P/ASX 200 and FTSE 100 offer protective put opportunities.

Gaudenz Schneider

Kospi Index Options Weekly (Feb 17 – 21): Hedge Considerations as Rally Stalls at 350

Kospi rally pauses just above 350, key levels from past three years, recommended hedge strategies for those looking to protect recent gains.

John Ley

KOSPI 200 - Upcoming BOK Rate Decision: Navigating Market Moves and Profit Opportunities

Timely reminder of the anticipated 0.25% Rate Cut by the Bank of Korea tomorrow, 25 Feb. The outcome of the decision is far from certain, and...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Street Intel on NPS's Buy Flow—the Key Swing Factor as Korea's Short-Selling Comeback

This post delivers key market intel on NPS’s buy flow—the biggest swing factor in Korea’s short-selling comeback set for late March.

Sanghyun Park

Korean IPOs: Cornerstone Bill Back in Play—This Time, It Might Stick

Cornerstone system proposed for Korean IPOs today: Higher chances of passage this time – impact analysis on our IPO trading playbook

Sanghyun Park

Global Option Implied Volatility - Opportunities in S&P/ASX 200, KOSPI 200, Nikkei 225, FTSE 100.

​US tariffs on Mexico and Canada effective 4 March as a potentially adverse market event. S&P/ASX 200 and FTSE 100 offer protective put opportunities.

Gaudenz Schneider

Kospi Index Options Weekly (Feb 17 – 21): Hedge Considerations as Rally Stalls at 350

​Kospi rally pauses just above 350, key levels from past three years, recommended hedge strategies for those looking to protect recent gains.

John Ley

KOSPI 200 - Upcoming BOK Rate Decision: Navigating Market Moves and Profit Opportunities

Timely reminder of the anticipated 0.25% Rate Cut by the Bank of Korea tomorrow, 25 Feb. The outcome of the decision is far from certain, and...

Gaudenz Schneider

US tariffs on Mexico and Canada effective 4 March as a potentially adverse market event. S&P/ASX 200 and FTSE 100 offer protective put opportunities.

Kospi rally pauses just above 350, key levels from past three years, recommended hedge strategies for those looking to protect recent gains.