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 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

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

<ul>
<li>Since short selling was banned in November 2023, short interest has plunged in Korea as shorts were covered. Markets have not done much over the last 16 months though. </li>
<li>Foreign investor holdings have dropped from 32.05% in July to 28.57%. The top 25 stocks bought by foreign investors outperformed the top 25 stocks sold by 128% in 16 months.</li>
<li>There will be trade opportunities across indices, pref/ords, index migrations and deletions, potential market upgrades and overvalued stocks being sold.</li>
</ul>


Since short selling was banned in November 2023, short interest has plunged in Korea as shorts were covered. Markets have not done much over the last 16 months though. 
Foreign investor holdings have dropped from 32.05% in July to 28.57%. The top 25 stocks bought by foreign investors outperformed the top 25 stocks sold by 128% in 16 months.
There will be trade opportunities across indices, pref/ords, index migrations and deletions, potential market upgrades and overvalued stocks being sold.


Korea: Short Selling Is Back in March; Trade Ideas

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>LG Chem is navigating a significant strategic pivot, de-emphasizing its cyclical petrochemicals business in favor of high-growth advanced materials, particularly for electric vehicles (EVs).</li>
 <li>Financial performance has been weak, with recent years showing revenue decline and net losses, driven by challenging conditions in the petrochemical sector and a temporary slowdown in the EV market.</li>
 <li>The company's outlook is a tale of two segments: a bearish view on petrochemicals due to cost pressures and oversupply, contrasted with a bullish outlook for the advanced materials division, which is expected to see improving profitability from 4Q26 onwards.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  LG Chem is navigating a significant strategic pivot, de-emphasizing its cyclical petrochemicals business in favor of high-growth advanced materials, particularly for electric vehicles (EVs).
  Financial performance has been weak, with recent years showing revenue decline and net losses, driven by challenging conditions in the petrochemical sector and a temporary slowdown in the EV market.
  The company's outlook is a tale of two segments: a bearish view on petrochemicals due to cost pressures and oversupply, contrasted with a bullish outlook for the advanced materials division, which is expected to see improving profitability from 4Q26 onwards.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: LG Chem Ltd (051910 KS) - Aug 2026

External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

<ul><li>We maintain our Buy rating on LG Chem but lower our target price to W440,000 (from W480,000), reflecting downward revisions to our earnings estimates for the petrochemicals division and higher net debt.</li><li>That said, we expect profitability in advanced materials to continue improving through 4Q26.</li><li>In cathode materials, we expect utilization to recover to 70–80% in 4Q26 on the ramp-up of new projects, while increased separator sales for ESS applications should also support profitability. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We maintain our Buy rating on LG Chem but lower our target price to W440,000 (from W480,000), reflecting downward revisions to our earnings estimates for the petrochemicals division and higher net debt.That said, we expect profitability in advanced materials to continue improving through 4Q26.In cathode materials, we expect utilization to recover to 70–80% in 4Q26 on the ramp-up of new projects, while increased separator sales for ESS applications should also support profitability. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

LG Chem (051910 KS/Buy)Advanced materials rebound underway

<ul>
 <li>
<a href="https://smartkarma.com/entities/lg-chem-ltd-d9bc981c-8f0e-4d1b-bded-e7f1f63a4b30">LG Chem </a>is navigating a significant downturn, with recent financial performance impacted by a cyclical trough in its core Petrochemicals business and a temporary slowdown in the EV market affecting its Advanced Materials segment.</li>
 <li>The company is undergoing a strategic transformation, aggressively shifting its portfolio towards three new growth engines: Battery Materials, Eco-Friendly/High-Value Materials, and Innovative New Drugs, supported by massive R&amp;D investments.</li>
 <li>While current profitability and cash flow are under severe pressure, the company's leadership in key materials, long-term contracts in the EV supply chain, and deeply discounted valuation present a potential high-risk, high-reward turnaround opportunity.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
LG Chem is navigating a significant downturn, with recent financial performance impacted by a cyclical trough in its core Petrochemicals business and a temporary slowdown in the EV market affecting its Advanced Materials segment.
  The company is undergoing a strategic transformation, aggressively shifting its portfolio towards three new growth engines: Battery Materials, Eco-Friendly/High-Value Materials, and Innovative New Drugs, supported by massive R&amp;D investments.
  While current profitability and cash flow are under severe pressure, the company's leadership in key materials, long-term contracts in the EV supply chain, and deeply discounted valuation present a potential high-risk, high-reward turnaround opportunity.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

South Korea

LG Chem Ltd. is a chemical manufacturer.  The Company's products include petrochemicals, plastic resins, and engineering plastics.  LG Chem also produces industrial and electronic materials.

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LG Chem Ltd (051910 KS)

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

Korea: Short Selling Is Back in March; Trade Ideas

Short selling in Korea commences from Monday. There will be a lot of interest in shorting stocks/sectors depending on how they have performed since...

Brian Freitas

Primer: LG Chem Ltd (051910 KS) - Aug 2026

LG Chem is navigating a significant strategic pivot, de-emphasizing its cyclical petrochemicals business in favor of high-growth advanced...

αSK Primers

LG Chem (051910 KS/Buy)Advanced materials rebound underway

In cathode materials, we expect utilization to recover to 70–80% in 4Q26 on the ramp-up of new projects, while increased separator sales for ESS...

Mirae Asset Securities

Primer: LG Chem (051915 KS) - Aug 2026

LG Chem is navigating a significant downturn, with recent financial performance impacted by a cyclical trough in its core Petrochemicals...

αSK Primers

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Korea: Short Selling Is Back in March; Trade Ideas

Short selling in Korea commences from Monday. There will be a lot of interest in shorting stocks/sectors depending on how they have performed since...

Brian Freitas

Primer: LG Chem Ltd (051910 KS) - Aug 2026

LG Chem is navigating a significant strategic pivot, de-emphasizing its cyclical petrochemicals business in favor of high-growth advanced...

αSK Primers

LG Chem (051910 KS/Buy)Advanced materials rebound underway

In cathode materials, we expect utilization to recover to 70–80% in 4Q26 on the ramp-up of new projects, while increased separator sales for ESS...

Mirae Asset Securities

Primer: LG Chem (051915 KS) - Aug 2026

LG Chem is navigating a significant downturn, with recent financial performance impacted by a cyclical trough in its core Petrochemicals...

αSK Primers

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