In today’s briefing:
- Alibaba (9988 HK) Options Insights: Navigating Contango and Skew for Profitable Trades
- Alibaba (9988 HK): Top Trades and Strategic Insights from Options Trading
- China Healthcare Weekly (Jun.22) – CNPGC to Acquire Shuanglin, Thoughts on Zhou Liu Fu’s IPO Pricing
- FWD Group IPO: The Investment Case
Alibaba (9988 HK) Options Insights: Navigating Contango and Skew for Profitable Trades
- Context: Analysis of Alibaba’s (9988 HK) implied volatility surface as of June 20, 2025, examining implied volatility patterns, skew structures, and open interest distribution across various expiry dates.
- Highlights: One-month implied volatility at 31.6% is trading at historically cheap levels (13th percentile), while the skew shows a pronounced volatility smile favoring spreads.
- Why Read: Essential for options traders and volatility strategists looking to capitalize on the historical cheapness of current implied volatility levels, particularly given the favorable skew structure for spread strategies.
Alibaba (9988 HK): Top Trades and Strategic Insights from Options Trading
- Context: Over the past five trading days, Alibaba Group Holding (9988 HK) live multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
- Highlights: Diagonal Spreads continue to enjoy popularity. Strategies tend to have a short-term horizon and exhibit a slightly bearish bias.
- Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,
China Healthcare Weekly (Jun.22) – CNPGC to Acquire Shuanglin, Thoughts on Zhou Liu Fu’s IPO Pricing
- The 2024 China Hospital Medication Market Pattern Report has been released, and we have found some interesting points worth the attention.
- CNPGC plans to acquire 21.03% of Pacific Shuanglin’s shares at a premium of over 30% and become the actual controller. Due to horizontal competition issue, there’s potential M&A/privatization opportunities here.
- The IPO of Zhou Liu Fu is fairly priced. But fundamentals would not improve due to high gold prices and would deteriorate instead. Share price upside potential could be lower-than-expected.
FWD Group IPO: The Investment Case
- FWD Group Holdings (FWD HK) is a pan-Asia insurer that has filed its PHIP to raise around US$500 million.
- FWD initially aimed for an NYSE IPO in 2021 to raise US$2-3 billion at a US$13-15 billion valuation. An HKEx listing in 2022 was shelved due to market conditions.
- This note outlines the investment case. My analysis suggests that the fundamentals are mixed as FWD is rapidly growing its new business, but at the expense of its margin.
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