Weekly Top Ten Equity Derivatives – Sep 14, 2025

1. Volatility Cones: Spotting Opportunities in Tencent, JD.com, Ping An & More

By Gaudenz Schneider

• Context: Volatility cones provide a clear framework to evaluate whether options are trading cheap or rich.
• Highlights: Major stocks, including Tencent (700 HK), Xiaomi (1810 HK), and Meituan (3690 HK), trade at historically cheap implied volatility. Upcoming earnings are starting to be reflected in November IV.
• Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.

2. China Mobile (941 HK): Tactical Outlook as HKBN Deal Unfolds

By Nico Rosti, MRM Research

• As you all know China Mobile (941 HK) has strategically ramped up its ownership in HKBN Ltd (1310 HK)  aiming at full control/takeover, while navigating regulatory approvals and competitive bids.
• The stock suffered a pretty big drop in the last 2 weeks, especially last week, when it reached 85.1. This week the stock started a small recovery rally.
• Our model finds China Mobile oversold (short-term) but we cannot rule out a further drop to/below 83.2 (Q3 support), the current pattern is bearish: brief rally then down again.

3. Samsung Electronics (005930 KS): Tactical Outlook and Profit Targets

By Nico Rosti, MRM Research

• Samsung Electronics (005930 KS) has been in a downtrend for 4 weeks, but it was only mildly oversold (60% prob. of reversal last Friday, at the Close).
• After 4 weeks down, this week the stock re-started its rally, touching 71200 on Tuesday at the Close. 
• This insight will try to define the short-term profit targets for this rally (spoiler: they are not far, at least from the TIME MODEL perspective…).

4. Mitsubishi Electric’s Nozomi Networks Acquisition, a Potential Catalyst

By Jay Cameron, Cameron Design

• Mitsubishi Electric’s $1 billion acquisition of Nozomi Networks is a strategic move to continue its transition from hardware manufacturing to a leading solutions provider in the expanding industrial cybersecurity market.
• This significant deal is expected to create growth and synergy by combining complementary strengths in operational technology (OT) security.
• The acquisition represents a major commitment to digital transformation, which is anticipated to have a positive impact on Mitsubishi Electric’s stock performance in the 5-10 year horizon.

5. Hang Seng Index (HSI) Profit Targets: Has The Rally Topped?

By Nico Rosti, MRM Research

• The Hang Seng Index (HSI INDEX) has been rallying +37% since its plunge to 19260 on April 7th. It is +6% higher than its previous high in mid-March.
• The sentiment towards the index remains positive lately, and our model indicates the HSI  is a bit overbought but could go higher.
• The HSI INDEX starts to be toppish around 26874 (75% prob. of reversal). Covering past that point is not a bad idea, especially if the index is up 3-4 weeks.

6. Hong Kong Single Stock Options Weekly (Sept 08 – 12): Alibaba Surge Helps Push HSI to Four-Year High

By John Ley, Clifton Derivatives

• HSI broke out to fresh four-year highs, driven by Alibaba’s surge, with broad-based gains and rising single stock option activity.
• Market breadth strengthened across both price action and single stock options flows.
• Spot-Up/Vol-Up dynamics defined the week, as sectors with strong gains also posted the largest implied vol increases.

7. Global Markets Tactical Outlook: WEEKLY Recap (Sep 8 – Sep 12)

By Nico Rosti, MRM Research

• A synoptic look at the tactical setups for the indices, stocks, commodities and bonds we cover, week September 1 – September 5. The MODEL’s SUPPORT/RESISTANCE data file is attached.
• OVERBOUGHT at the WEEKLY Close: Alphabet (GOOG US) , Taiwan Semiconductor (TSMC) (2330 TT) , Gold (GOLD COMDTY) , 10-Year US Treasuries (ZN Futures)
• OVERSOLD at the WEEKLY Close: NVIDIA Corp (NVDA US) , Samsung Electronics (005930 KS) , China Mobile (941 HK) , Softbank Group (9984 JP)