This weekly newsletter pulls together summaries of the top ten most-read Insights across Equity Derivatives on Smartkarma.
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1. SK Hynix (000660 KS): Calls Outnumber Puts 100:1 as Put/Call Ratio Hits Extremes
- SK Hynix (000660 KS) options positioning is extremely call-heavy, with the put/call ratio near extremes on both open interest and volume, indicating overwhelming call-side dominance.
- Call trading activity accelerated sharply on 8–9 June, reinforcing the imbalance, although open interest has since declined partly due to the 11 June expiry.
- The imbalance comes amid extraordinary stock momentum and rich volatility, with SK hynix up sharply year-to-date, 1-month ATM IV near 130%, and July call OI concentrated in deep ITM strikes.
2. KOSPI 200 Tactical View: Is Now A Good Time to BUY The Dip?
- The KOSPI 200 INDEX (KOSPI2) sold off -8.52% on Monday. It’s down -17% from its peak last week.
- If the AI/semis narrative is true, this is the best possible opportunity to buy/add positions in the KOSPI 200 at discounted prices.
- Our model sees a very oversold condition based on analysis of similar past trend patterns, suggesting this is a good time to initiate accumulation.
3. Winbond Electronics (2344 TT) Tactical Outlook After Inclusion in Yuanta/P-Shares Taiwan Div+ ETF
- On June 5 Winbond Electronics (2344 TT) has been added to the constituents of the Yuanta/P-Shares Taiwan Dividend Plus ETF.
- As many other Asian tech stocks, Winbond Electronics (2344 TT) has experienced a large (-22%) drop in values since its peak on June 3rd.
- The selloff has handed passive trackers a cheaper entry — but the real question is how much downside remains if selling pressure persists?
4. SK Hynix (000660 KS) Tactical Outlook Ahead of Nasdaq ADR Listing SEC Clearance
- SK Hynix (000660 KS) rally has paused since the end of May. This insight evaluates tactical scenarios ahead of the Nasdaq ADR listing.
- Institutional flows will react to anticipated SEC clearance for a $14B Nasdaq ADR listing, expected by the week of June 22, driving structural positioning ahead of launch.
- Overall the long-term picture remains highly bullish but there could be some short-term turbulence/volatility. We see this as an opportunity to position at discounted price.
5. Trading the Fed-Driven Tech Selloff: Technical Supports and the Nikkei 64000 Options Strategy
- Equities dropped off sharply in the Friday session in an “opposite” direction from the positive surprise in the non-farm payroll as market prices imply that the Fed could hike rates.
- Inflation remains a concern for the Fed as highlighted by Fed Hammack last week, which hinted at the possibility the central bank may address the situation with a rate hike.
- This insight discusses BoJ comments and the current move’s dynamics on Japan indices and the dollar-yen.
6. Nasdaq-100 Vol Premium Hits Two-Sigma Extreme Vs VIX
- Context: The VIX / VXN ratio has reached a two-sigma extreme, with Nasdaq-100 implied volatility trading at a historically wide premium to S&P 500 volatility despite a rising market backdrop.
- What the dislocation signals: The widening VXN premium points to materially higher uncertainty in the tech- and AI-heavy Nasdaq-100, with implications for hedging costs, relative valuation, and tech/AI risk premia.
- Key event risk — SpaceX IPO: The SpaceX (SPCX) IPO, with potential Nasdaq-100 (NDX) inclusion, could sustain or widen the CBOE NASDAQ-100 Volatility (VXN) premium.
7. Hedging the NFP Shock: Tech Selloffs, Fed Hike Risks, and the VIX SEP26 Option Spread
- The NFP jump from 88,000 expectations startled markets, causing a selloff in some top performers for the year, and a selloff in the S&P, and global markets.
- We suggest evaluating if a secondary selloff is possible, and looking to the derivatives market for possible solutions.
- FOMC will need to add the wider payrolls trend to the list of high priority topics at next week’s meeting.
8. Hong Kong Single Stock Options Weekly June 08–12: Financials Lead, Vols Diverge, SPCX Debuts
- HSI weakness was tempered by a late-week rally, but market moving news kept single stock activity in focus.
- Call trading continued to account for a large share of overall activity, with volume concentrated in the early part of the week.
- Index and single stock implied vols continued to diverge, leaving average single stock vols looking elevated by comparison.
9. Pop Mart, Trip.com, Geely Auto, and More: Weekly Options Start Trading on 15 June
- HKEX Expands Weekly Options: 17 new single-stock weekly expiries are launched in the next two weeks, doubling the offering of Hong Kong’s fast-growing short-dated options market.
- Why It Matters: Weekly expiries let traders and investors hedge or speculate around key events with precision. They offer lower premiums and higher gamma than longer-dated contracts.
- Momentum: Trading volumes in existing weeklies continues to rise, underscoring rising investor adoption and liquidity.
