In today’s briefing:
- Alibaba (9988 HK): Trends in CALL Strikes and Open Interest Visualized in Animation and Charts
- Alibaba (9988 HK): Trends in PUT Strikes and Open Interest Visualized in Animation and Charts
- The HSI PUT: Hedging Strategies for an Overextended Rally
- It’s M&M Vs. The Rest – Passenger Car Market Update
- Chery Auto Pre-IPO Tearsheet
- Texas Roadhouse: Operational Enhancements, Off-Premise Growth & Other Major Drivers
- Floor & Decor Holdings: Will Its Diverse Product Availability & Pricing Strategies Amplify Growth?
- Pharmarise HDS (2796 JP) – Navigating Industry Restructuring…
- Rivian Automotive: How Its Recent JVs & Strategic Partnerships Are Shaping Its Future!
- Transition to Regional Stock Exchange Means Continued Unhappy History for Shareholders
Alibaba (9988 HK): Trends in CALL Strikes and Open Interest Visualized in Animation and Charts
- While Alibaba Group Holding (9988 HK) rallied, lower in-the-money calls were closed, realizing gains, while higher out-of-the-money strikes gained popularity.
- The median strike price lagged the sharp increase in stock price. The median strike currently stands at 107.50.
- With 81% of March calls currently in-the-money and higher strikes trading at premium implied volatility, active trading is expected in the 150-170 strike range.
Alibaba (9988 HK): Trends in PUT Strikes and Open Interest Visualized in Animation and Charts
- As Alibaba Group Holding (9988 HK) rallied, put strike distribution remained largely unchanged with median strikes only rising from 80 to 85, pushing protection increasingly deep out-of-the-money.
- With most puts now deep out-of-the-money, active trading is expected in the 120-140 strike range.
- The deep out-of-the-money put strikes trade at a significant premium to at the money implied volatility. The 130 strikes trade below, offering an opportunity for an effective hedge.
The HSI PUT: Hedging Strategies for an Overextended Rally
- The HSI INDEX has been defying gravity, recently. It is up more than 30% from its most recent low.
- In our previous, Jan. 11th insight we highlighted very precisely the support zone (18.8k-17.5k) from where the index was poised to resume its rally (the bottom was printed at 18671).
- Our models are currently indicating a very overbought condition. Leveraging the information relayed by Gaudenz Schneider in a recent insight, we think a “HSI PUT” could make sense here.
It’s M&M Vs. The Rest – Passenger Car Market Update
- Mahindra & Mahindra (MM IN)growth has been an outlier in the intensely competitive Indian passenger car industry.We share insights on how this trend has evolved over the past several months.
- This insight provides detailed analysis of sales performance of key players-Maruti Suzuki India (MSIL IN) ,Mahindra & Mahindra (MM IN),Tata Motors Ltd (TTMT IN) & Hyundai Motor India (HYUNDAI IN)
- Various initiatives introduced in the recent Union Budget are expected to boost demand for passenger cars in the medium term.
Chery Auto Pre-IPO Tearsheet
- Chery Automobile Co. Ltd. (CACTZ CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO. The deal will be run by CICC, Huatai and GF Securities.
- Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
- According to F&S, it was the second largest Chinese domestic brand passenger vehicle company, and the 11th largest globally, in terms of global sales volume of passenger vehicles in 9M24.
Texas Roadhouse: Operational Enhancements, Off-Premise Growth & Other Major Drivers
- Texas Roadhouse, Inc. reported robust financial and operational metrics for the fiscal year 2024, marking it as another successful year for the company.
- The restaurant chain achieved a revenue milestone, nearing $5.4 billion, driven by positive traffic growth across its brands.
- The average unit volume exceeded $8 million for the first time in the company’s history, thanks to double-digit growth in restaurant margin dollars, income from operations, and earnings per share for a consecutive year.
Floor & Decor Holdings: Will Its Diverse Product Availability & Pricing Strategies Amplify Growth?
- Floor & Decor Holdings has presented its fourth quarter and full-year results for fiscal 2024.
- The results include positive developments as well as several challenges facing the company.
- Key highlights of the performance include solid sales growth, market share expansion, and effective cost management strategies amid a contracting flooring industry.
Pharmarise HDS (2796 JP) – Navigating Industry Restructuring…
- Japan’s elderly population is projected to continue to grow through 2040, and Pharmarise HDS will benefit from the corresponding increase in the number of prescriptions.
- However, there are expected to be revisions to national health insurance (NHI) drug prices , one measure to restrain medical spending, and revisions to dispensing fees, which are made once every two years.
- Among the industry, the company is keen on preparing to counter downward pressure on prices by focusing on capturing technical fees, including community support system premiums and family pharmacist guidance fees.
Rivian Automotive: How Its Recent JVs & Strategic Partnerships Are Shaping Its Future!
- Rivian Automotive presented a comprehensive overview of its performance and future outlook during their Fourth Quarter and Full Year 2024 report.
- The company showcased a series of achievements and challenges that define their current position and trajectory.
- Rivian achieved a notable milestone in Q4 2024 with a positive gross margin, attributed to significant reductions in cost of goods sold (COGS) and a boost in per unit revenue.
Transition to Regional Stock Exchange Means Continued Unhappy History for Shareholders
- Many companies that cannot meet listing criteria have challenges with their tradable stock market capitalization in Prime markets, both in Standard markets, and tradable share ratios in Growth markets.
- As a result of the market restructuring, the role of regional securities exchanges became a “receptacle” for ensuring trading of shares of companies that cannot meet the TSE listing criteria.
- For a company that considers the purpose of a stock listing to be to improve the company’s credibility and name recognition, going private or an MBO isn’t on their mind.
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