Weekly Top Ten Equity Derivatives – Mar 30, 2025

1. Alibaba (9988 HK): Top Trades – Strategies That Stand Out.

By Gaudenz Schneider

• This Insight analyses Alibaba Group Holding (9988 HK) multi-leg option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.
• These traders tailor structures to risk budgets and take calculated bets. With implied volatility below its median and below realized volatility, all strategies reviewed are long volatility.
• Almost 20% of all strategies are Calendar or Diagonal Spreads. Diagonal spreads can even earn premium in the current volatility environment. A live strategy is examined.

2. Hang Seng Index FAF Calculation Change: Buy The Dip!

By Nico Rosti, MRM Research

• As reported by Travis Lundy , the Hang Seng Index (HSI INDEX) Committee changed the way float is calculated for Secondary Listings in Hang Seng indices.
• This action is expected to add US$2.7bn of buying to some names- read Travis Lundy’s insight for more details on this.
• The HSI INDEX is currently down 3 weeks, and quite OVERSOLD, buying the dip, at this point makes a lot of sense.

3. BYD (1211 HK) Profit Targets After Record-Breaking Earnings

By Nico Rosti, MRM Research

• BYD (1211 HK) posted a record 2024 net profit of 40.25B yuan ($5.55B) as revenue surged 29% to 777B yuan ($107.2B), beating analyst forecasts of $5.47B and $105.6B.
• Notably, BYD’s revenue topped Tesla’s $97.7B reported on Jan. 30. The Chinese automaker is now among the biggest in the world.   
• On March 4, our BYD’s insightcorrectly suggested to BUY the stock below 340 (now trading above 400). This insight will try to determine profit targets for the current rally.

4. BYD (1211 HK) Earnings Today: Anticipated Price Movements and Options Insights

By Gaudenz Schneider

• Today,BYD (1211 HK) is scheduled to report its annual 2024 financial results. Timing: 24 March 2025, after market close.
• Expected Price Movement: Option implied movement is above the historically recorded movement.
• Implied volatility and options strategies: Discussion of implied volatility term structure and option strategies.

5. NIFTY Outlook: Possible Breakout as Options Expiry Moves to Monday

By Nico Rosti, MRM Research

• The NIFTY Index had rallied quite hard the week before last week, then stalled last week, however its looks like maybe is changing in its trend structure, maybe a breakout…
• However the breakout may have to wait a bit more, as the NIFTY is overbought WEEKLY according to our model: before the uptrend resumes, there will be a pullback.
• Last: as written by AceGama Advisors the WEEKLY options expiry will be moved from Thursday to Monday, starting in April 2025, impacting the market. Read their insight for detailed analysis.

6. Tata Motors: Is the Worst Finally Over? A Turnaround & Demerger Play

By Sudarshan Bhandari, Beat the Street

• The Chinese slowdown and JLR’s ICE phase-out pressure near-term margins, but Indian PV growth and EV leadership offer a strong domestic counterbalance.
• Tata Motors is demerging its Commercial Vehicle and Finance arms to sharpen focus and unlock value across its core Passenger Vehicle and JLR businesses.
• Tata Motors is transitioning from a cyclical turnaround story to a long-term structural play on India’s mobility and global EV transformation.

7. NSE NIFTY50/ Vol Update / Expiry Day Shifted to Mondays – Expect Major Changes in Vol Dynamics

By Sankalp Singh, AceGama Advisors

• Effective 05.04.2025, Expiry for Options will be moved from Thursday to Monday. Premiums still adjusting to retroactive implementation of the technical change.
• Option markets shun additional risk premia on account of U.S. trade tensions – IVs remain subdued. Vol-state transitioned to “Low & Down” & term-structure pushed further into Contango.  
• IVs were higher on the weekly open, but premiums decayed rapidly post U.S. Fed event risk. Skew has unwound its earlier compression.

8. The Beat Ideas: InterGlobe Aviation- Growth Via Fleet Expansion and International Ambitions

By Sudarshan Bhandari, Beat the Street

• InterGlobe Aviation Ltd (INDIGO IN) placed a record aircraft order and announced plans to double its size by 2030, including entry into long-haul international routes via Airbus A350s.
• This signals a shift from being a low-cost, short-haul leader to a global aviation player aiming for 40% international capacity by FY30.
• IndiGo is no longer just a domestic LCC story: its scale, global ambitions, and diversification make it a long-term structural compounder in aviation.

9. Bank Of China (3988 HK/601988 CH) Earnings on 26/3: Anticipated Price Movements and Options Insights

By Gaudenz Schneider

• Bank Of China Ltd (H) (3988 HK) /Bank of China (601988 CH) is scheduled to report its annual 2024 financial results on 26 March 2025, after market close.
• Expected Price Movement: Option implied movement is above the historically recorded movement.
• Implied Volatility, Options Strategies and Dividends: Discussion of implied volatility term structure and option strategies. Dividends are now semi-annual.

10. JD.com (9618 HK): Strategic Highlights and Market View from HKEX Top Trades

By Gaudenz Schneider

• This Insight analyses JD.com (9618 HK) option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.
• Bearish strategies dominate trading activity, outnumbering bullish ones by more than 3:1, with long volatility structures and calendar/diagonal spreads being prevalent.
• Long tail events: Several strategies follow a pattern of minimal upfront cost (0.1% premium), targeting a significant payout in case of large price movements within a short timeframe.