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

Index Rebalance

Ping An Healthcare and Technology / Index Rebalance

<ul>
<li>The review period for the December rebalance of the CSI Overseas China Internet Index ended 31 October. The changes should be announced 28 November and implemented close on 12 December.</li>
<li>There could be 6 inclusions for the <a href="https://www.smartkarma.com/entities/kraneshares-csi-china-internet-etf" target="_blank" data-smartkarma-citation="entities:28208:1" rel="noopener">KraneShares CSI China Internet ETF (KWEB US)</a> in December with most inclusions being high probability.</li>
<li>Impact on the inclusions varies between 1.3-5 days of ADV. There will be stocks with float increases and some capping changes.</li>
</ul>


The review period for the December rebalance of the CSI Overseas China Internet Index ended 31 October. The changes should be announced 28 November and implemented close on 12 December.
There could be 6 inclusions for the KraneShares CSI China Internet ETF (KWEB US) in December with most inclusions being high probability.
Impact on the inclusions varies between 1.3-5 days of ADV. There will be stocks with float increases and some capping changes.


KWEB Index Rebalance Preview: Bunch of Potential Inclusions in December

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>Investors haven’t lost their enthusiasm for Tencent. The put/call ratio is a long way from indicating panic.</li>
<li>Implied vols have risen but are far from panic levels with 1M implied at it's 39th percentile over the past year and 15th percentile since 2001.</li>
<li>Skew has risen significantly for out-of-the-money Puts as spot has moved into a range where there is higher Put positioning vs Call positioning. </li>
</ul>


Investors haven’t lost their enthusiasm for Tencent. The put/call ratio is a long way from indicating panic.
Implied vols have risen but are far from panic levels with 1M implied at it's 39th percentile over the past year and 15th percentile since 2001.
Skew has risen significantly for out-of-the-money Puts as spot has moved into a range where there is higher Put positioning vs Call positioning. 


EQD | Tencent – Call Buyers Haven’t Lost That Loving Feeling

Derivatives and Quantitative Strategist

Gaudenz Schneider

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener"><strong>Tencent</strong> (700 HK)</a> shares fell 7.3% on 7 January, after being designated a Chinese Military Company by the U.S. Department of Defense, prompting volatility to spike.</li>
<li>Given the potential for further downside, or a relief rally, significant price movements and high volatility are to be expected.</li>
<li>A long straddle is detailed to capitalize on the anticipated volatility in <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> .</li>
</ul>



Tencent (700 HK) shares fell 7.3% on 7 January, after being designated a Chinese Military Company by the U.S. Department of Defense, prompting volatility to spike.
Given the potential for further downside, or a relief rally, significant price movements and high volatility are to be expected.
A long straddle is detailed to capitalize on the anticipated volatility in Tencent (700 HK) .


EQD | Tencent (700 HK) Option Strategy for Navigating a Volatile Market

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>The U.S. Department of Defense announced that it has added numerous Chinese companies including Tencent and CATL as companies that work with China's military.</li>
<li>This is likely to negatively impact Tencent and CATL's prices in the next several weeks but positively impact on some of the major Korean rechargeable battery and gaming stocks.</li>
<li>The higher probability scenario at this point is for Tencent and CATL to be officially included in the Chinese Military Industrial Complex list in the coming weeks. </li>
</ul>


The U.S. Department of Defense announced that it has added numerous Chinese companies including Tencent and CATL as companies that work with China's military.
This is likely to negatively impact Tencent and CATL's prices in the next several weeks but positively impact on some of the major Korean rechargeable battery and gaming stocks.
The higher probability scenario at this point is for Tencent and CATL to be officially included in the Chinese Military Industrial Complex list in the coming weeks. 


US Defense Dept Designates Tencent and CATL as Military Companies - Impact on Korean Competitors

<ul>
<li>This Insight analyzes <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility insights are provided.</li>
<li>Historically low implied volatility favors bullish or bearish long volatility strategies.</li>
<li>Calendar Spreads are a popular strategy. Bulls and bears are both very active in the market, expressing their views through trades.</li>
</ul>


This Insight analyzes Tencent (700 HK) tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility insights are provided.
Historically low implied volatility favors bullish or bearish long volatility strategies.
Calendar Spreads are a popular strategy. Bulls and bears are both very active in the market, expressing their views through trades.


EQD | Tencent (700 HK) - Popular Option Strategies and Top Trades, Low Vola Presents Opportunity

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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

Tencent Holdings (ADR) (TCEHY US)

KWEB Index Rebalance Preview: Bunch of Potential Inclusions in December

There could be 6 adds for the KWEB ETF in Dec, plus float increase for Healthyway and capping changes for the large stocks. CaoCao is newly...

Brian Freitas

EQD | Tencent – Call Buyers Haven’t Lost That Loving Feeling

Investors remain optimistic about Tencent as put/call ratio shows no signs of panic. Implied vols have increased but are still below panic levels,...

John Ley

EQD | Tencent (700 HK) Option Strategy for Navigating a Volatile Market

Tencent shares drop 7.3% after being labeled a Chinese Military Company by the US. This option strategy positions traders for further price swings.

Gaudenz Schneider

US Defense Dept Designates Tencent and CATL as Military Companies - Impact on Korean Competitors

The U.S. Department of Defense announced that it has added numerous Chinese companies including Tencent and CATL as companies that work with...

Douglas Kim

EQD | Tencent (700 HK) - Popular Option Strategies and Top Trades, Low Vola Presents Opportunity

Analysis of Tencent's option strategies on the HK Exchange shows low implied volatility favoring long volatility strategies, with Calendar Spreads...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KWEB Index Rebalance Preview: Bunch of Potential Inclusions in December

There could be 6 adds for the KWEB ETF in Dec, plus float increase for Healthyway and capping changes for the large stocks. CaoCao is newly...

Brian Freitas

EQD | Tencent – Call Buyers Haven’t Lost That Loving Feeling

​Investors remain optimistic about Tencent as put/call ratio shows no signs of panic. Implied vols have increased but are still below panic levels,...

John Ley

EQD | Tencent (700 HK) Option Strategy for Navigating a Volatile Market

​Tencent shares drop 7.3% after being labeled a Chinese Military Company by the US. This option strategy positions traders for further price swings.

Gaudenz Schneider

US Defense Dept Designates Tencent and CATL as Military Companies - Impact on Korean Competitors

The U.S. Department of Defense announced that it has added numerous Chinese companies including Tencent and CATL as companies that work with...

Douglas Kim

EQD | Tencent (700 HK) - Popular Option Strategies and Top Trades, Low Vola Presents Opportunity

​Analysis of Tencent's option strategies on the HK Exchange shows low implied volatility favoring long volatility strategies, with Calendar Spreads...

Gaudenz Schneider

Investors remain optimistic about Tencent as put/call ratio shows no signs of panic. Implied vols have increased but are still below panic levels,...

Tencent shares drop 7.3% after being labeled a Chinese Military Company by the US. This option strategy positions traders for further price swings.

Analysis of Tencent's option strategies on the HK Exchange shows low implied volatility favoring long volatility strategies, with Calendar Spreads...