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

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A week after the State Council issued "Several Opinions" (关于加强监管防范风险推动资本市场高质量发展的若干意见》), the CSRC <a href="http://www.csrc.gov.cn/csrc/c100028/c7474875/content.shtml" target="_blank" rel="noopener">announced</a> Friday five capital market cooperation measures with HK Connect. The goals are to increase cross-border investor flows.</li>
<li>They include: a broader range of ETFs in Connect, including REITs in both directions, include RMB counters in Southbound, improve mutual recognition of funds, increasing China IPOs in Hong Kong.</li>
<li>RMB Dual Counters Southbound-eligible will take time. They have some homework, but it is on the "To Do" list "as soon as possible and smoothly." Watch impact on H/A Pairs.</li>
</ul>


A week after the State Council issued "Several Opinions" (关于加强监管防范风险推动资本市场高质量发展的若干意见》), the CSRC announced Friday five capital market cooperation measures with HK Connect. The goals are to increase cross-border investor flows.
They include: a broader range of ETFs in Connect, including REITs in both directions, include RMB counters in Southbound, improve mutual recognition of funds, increasing China IPOs in Hong Kong.
RMB Dual Counters Southbound-eligible will take time. They have some homework, but it is on the "To Do" list "as soon as possible and smoothly." Watch impact on H/A Pairs.


RMB Dual Counter Trading Is Coming - This Changes AH Relationships

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

<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

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>As the earnings season draws to a close, we look at Asian markets'/sectors' EPS estimate progression during the reporting season and earlier. Specifically, we search for upward or downward inflections.</li>
<li>Korea and Taiwan had the strongest EPS upgrades during this reporting season, despite the trade uncertainties. Philippines, Indonesia, Malaysia also had decent upgrades. HK/China and India continue to be downgraded.</li>
<li>Korean and Taiwanese technology, Korean industrials, HK Technology Services had strong upgrades. So did Singapore and Philippines financials, and Thailand Communications - the latter two with a long upgrade history.</li>
</ul>


As the earnings season draws to a close, we look at Asian markets'/sectors' EPS estimate progression during the reporting season and earlier. Specifically, we search for upward or downward inflections.
Korea and Taiwan had the strongest EPS upgrades during this reporting season, despite the trade uncertainties. Philippines, Indonesia, Malaysia also had decent upgrades. HK/China and India continue to be downgraded.
Korean and Taiwanese technology, Korean industrials, HK Technology Services had strong upgrades. So did Singapore and Philippines financials, and Thailand Communications - the latter two with a long upgrade history.


Asian Equities: Taking Stock After the Result Season: Where Are EPS Estimates Rising and Falling?

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 (700 HK)

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

RMB Dual Counter Trading Is Coming - This Changes AH Relationships

1 year+ after the CSRC said it was working towards expanding HKD RMB dual counter trading in HK, making RMB counters eligible, last month through...

Travis Lundy

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

Asian Equities: Taking Stock After the Result Season: Where Are EPS Estimates Rising and Falling?

Asian markets' EPS est show strong upgrades in Korea and Taiwan, while HK/CN & India continue to be downgraded. KR & TW Tech, HK Tech Services, SG...

Manishi Raychaudhuri

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

RMB Dual Counter Trading Is Coming - This Changes AH Relationships

1 year+ after the CSRC said it was working towards expanding HKD RMB dual counter trading in HK, making RMB counters eligible, last month through...

Travis Lundy

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

Asian Equities: Taking Stock After the Result Season: Where Are EPS Estimates Rising and Falling?

​Asian markets' EPS est show strong upgrades in Korea and Taiwan, while HK/CN & India continue to be downgraded. KR & TW Tech, HK Tech Services, SG...

Manishi Raychaudhuri

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.

Asian markets' EPS est show strong upgrades in Korea and Taiwan, while HK/CN & India continue to be downgraded. KR & TW Tech, HK Tech Services, SG...