Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>Since 2x leveraged ETFs linked to <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK hynix (000660 KS)</a> launched in late May, volatility in the underlying stock has increased significantly.</li>
<li>Although daily rebalancing can amplify price moves, the data do not indicate that it does so systematically.</li>
<li>Overnight and intraday returns are largely uncorrelated across the sample, although they tend to reinforce each other on days with extreme moves.</li>
</ul>


Since 2x leveraged ETFs linked to SK hynix (000660 KS) launched in late May, volatility in the underlying stock has increased significantly.
Although daily rebalancing can amplify price moves, the data do not indicate that it does so systematically.
Overnight and intraday returns are largely uncorrelated across the sample, although they tend to reinforce each other on days with extreme moves.


SK Hynix (000660 KS): 130% Volatility and 2x Leveraged ETF Rebalancing

<ul>
<li>Following extraordinary price swings in <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> last week, combined AUM in KRX-listed 2x long ETFs retreated from its June peak but remains 47% above launch levels.</li>
<li>Medium-Term returns expose significant performance drag: since launch, Samsung Electronics has fallen 21.0%, while the leveraged index declined 51.8%; net flows also shifted towards outflows in late July.</li>
<li>This Insight examines AUM, flows and return multiples across the long and inverse products, showing how daily rebalancing can undermine performance even when the directional call appears correct.</li>
</ul>


Following extraordinary price swings in Samsung Electronics (005930 KS) last week, combined AUM in KRX-listed 2x long ETFs retreated from its June peak but remains 47% above launch levels.
Medium-Term returns expose significant performance drag: since launch, Samsung Electronics has fallen 21.0%, while the leveraged index declined 51.8%; net flows also shifted towards outflows in late July.
This Insight examines AUM, flows and return multiples across the long and inverse products, showing how daily rebalancing can undermine performance even when the directional call appears correct.


Samsung Electronics (005930 KS): 2x Leveraged ETF AUM Retreats as Performance Drag Mounts

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<ul>
<li>Our top short bets in Asia (HSI, Taiwan, Korea) show risk of breaking to new lows. The RTY breaks gives the bear trade another leg down.</li>
<li>Our relative perform longs (STI and SET 50) are due to drift to support but holding up well. USD is breaking to new highs with momentum.</li>
<li>Asian markets that have held up are now at risk of late-stage capitulation - ASX, Nifty and NKY.</li>
</ul>


Our top short bets in Asia (HSI, Taiwan, Korea) show risk of breaking to new lows. The RTY breaks gives the bear trade another leg down.
Our relative perform longs (STI and SET 50) are due to drift to support but holding up well. USD is breaking to new highs with momentum.
Asian markets that have held up are now at risk of late-stage capitulation - ASX, Nifty and NKY.


Equity/Index & Cross Asset Volatility Specialist, Cameron Design

Jay Cameron

Equity/Index & Cross Asset Volatility Specialist

Cameron Design

We specialize in financial products and volatility. Our strategies balance speed, data, and risk control to capture opportunities across global markets. Our research leverages AI and data analytics to continuously refine our algorithms and adapt to evolving market dynamics.

<ul>
<li>After a large downswing over June and July, we examine Q2 earnings to see where SK Hynix is headed from here, noting the movement is recently amplified by leveraged trades.</li>
<li>A large cash influx attributed to the sale of shares in Kioxia added a significant amount to the company's cash, while debt ratios continue to be strong.</li>
<li>SK Hynix DEC26 Options are possible for US investors now, and we propose looking at out of the money options to get on the right side of the movement. </li>
</ul>


After a large downswing over June and July, we examine Q2 earnings to see where SK Hynix is headed from here, noting the movement is recently amplified by leveraged trades.
A large cash influx attributed to the sale of shares in Kioxia added a significant amount to the company's cash, while debt ratios continue to be strong.
SK Hynix DEC26 Options are possible for US investors now, and we propose looking at out of the money options to get on the right side of the movement. 


The KOSPI Semiconductor Leverage Loop: Navigating SK Hynix Volatility and DEC26 ADR Options

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>’s sharp rebound lifted combined leveraged ETF AUM back to 72% above launch levels, reversing much of the recent decline.</li>
<li>Medium-Term returns continue to demonstrate the risks of daily rebalancing, reinforcing that leveraged and inverse ETFs are ultra-short-term trading instruments.</li>
<li>Today’s rally triggered renewed inflows, led by Samsung Asset Management’s KODEX product, even as tighter regulation clouds the segment’s growth outlook.</li>
</ul>



SK Hynix (000660 KS)’s sharp rebound lifted combined leveraged ETF AUM back to 72% above launch levels, reversing much of the recent decline.
Medium-Term returns continue to demonstrate the risks of daily rebalancing, reinforcing that leveraged and inverse ETFs are ultra-short-term trading instruments.
Today’s rally triggered renewed inflows, led by Samsung Asset Management’s KODEX product, even as tighter regulation clouds the segment’s growth outlook.


SK Hynix (000660 KS): 25% Rebound Revives Leveraged ETF AUM

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)

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Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

SK Hynix (000660 KS): 130% Volatility and 2x Leveraged ETF Rebalancing

This Insight examines the extent to which daily rebalancing by 2x leveraged ETFs accounts for the recent surge in SK hynix’s volatility.

Gaudenz Schneider

Samsung Electronics (005930 KS): 2x Leveraged ETF AUM Retreats as Performance Drag Mounts

KRX-listed 2x ETFs on Samsung Electronics saw AUM retreat from the June peak, while daily rebalancing exposed performance drag in both long and...

Gaudenz Schneider

Asia Top Short Update

Our top short bets in Asia (HSI, Taiwan, Korea) show risk of breaking to new lows. The RTY breaks gives the bear trade another leg down. ASX,...

Thomas Schroeder

The KOSPI Semiconductor Leverage Loop: Navigating SK Hynix Volatility and DEC26 ADR Options

SK Hynix set highs in June before dropping off after the IPO. This insight examines the volatility picture for the stock and ADR, and proposes out...

Jay Cameron

SK Hynix (000660 KS): 25% Rebound Revives Leveraged ETF AUM

SK hynix’s 25% rebound revives leveraged ETF AUM and inflows, but medium-term performance and tighter regulation keep risks firmly in focus.

Gaudenz Schneider

Price Gauge

52-week Range

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