Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Call volumes dominate tradng across single stocks with the Put/Call ratio hitting its 3rd lowest level since the beginning of November. Volumes continue trend lower in place since early November.</li>
<li>Auto companies seeing big increases in option volumes with Li Auto and Great Wall Motor moving in opposite directions since the middle of the month.  </li>
<li>We add 2 new tables showing the largest volume increases across Puts and Calls – a conveient way to view unusual changes in trading activity.</li>
</ul>


Call volumes dominate tradng across single stocks with the Put/Call ratio hitting its 3rd lowest level since the beginning of November. Volumes continue trend lower in place since early November.
Auto companies seeing big increases in option volumes with Li Auto and Great Wall Motor moving in opposite directions since the middle of the month.  
We add 2 new tables showing the largest volume increases across Puts and Calls – a conveient way to view unusual changes in trading activity.


EQD | Hong Kong Single Stock Options Weekly December 23 – 27

<ul>
<li>Big increase in single stock volumes particularly Puts which pushed the single stock put call ratio over 1 for the first time since early November.</li>
<li>Heavy Put trading in the Financial Sector especially with ICBC and CCB.</li>
<li>Health Care, Energy and Materials are the 3 sectors seeing higher Put trading vs Calls and are also the 3 sectors with the lowest 3M implied vol 1 year percentile.</li>
</ul>


Big increase in single stock volumes particularly Puts which pushed the single stock put call ratio over 1 for the first time since early November.
Heavy Put trading in the Financial Sector especially with ICBC and CCB.
Health Care, Energy and Materials are the 3 sectors seeing higher Put trading vs Calls and are also the 3 sectors with the lowest 3M implied vol 1 year percentile.


EQD | Hong Kong Single Stock Options Weekly Dec 30 – Jan 03

Senior Equity Derivatives Trader

Simon Harris

<ul>
<li>We looked at HSBC and ICBC to consider relative vol surfaces </li>
<li>We evaluate relative risks of credit deterioration in China on both stocks</li>
<li>We suggest a relative value vol trade that offers good risk reward in various scenarios</li>
</ul>


We looked at HSBC and ICBC to consider relative vol surfaces 
We evaluate relative risks of credit deterioration in China on both stocks
We suggest a relative value vol trade that offers good risk reward in various scenarios


EQD | HSBA Vs ICBC (5 HK,1398 HK): Trade a Relative Value Vol Spread

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>SOUTHBOUND was again a net buyer, for HK$10.9bn this week, on smallish two-way volumes. Banks were a big buy.</li>
<li>The more I watch, the more I think the last few months have had serious national team buying of banks and energy, perhaps ahead of shareholder return policy changes.</li>
<li>But valuations are acceptable. Flows are good. Policy changes are afoot. SOUTHBOUND may continue to see inflows - national team and otherwise.</li>
</ul>


SOUTHBOUND was again a net buyer, for HK$10.9bn this week, on smallish two-way volumes. Banks were a big buy.
The more I watch, the more I think the last few months have had serious national team buying of banks and energy, perhaps ahead of shareholder return policy changes.
But valuations are acceptable. Flows are good. Policy changes are afoot. SOUTHBOUND may continue to see inflows - national team and otherwise.


HK Connect SOUTHBOUND Flows (To 5 Jul 2024); SOE Bank and SOE Petro-Energy Flows Dominate

Derivatives and Quantitative Strategist

Gaudenz Schneider

<ul>
<li>Box trades are gaining popularity on the Hong Kong Stock Exchange. These arbitrage strategies exploit price discrepancies in options markets for near risk-free profits.</li>
<li>Long box trades involve simultaneously buying bull call spreads and bear put spreads with identical strikes and expiration dates, creating a fixed payoff regardless of the underlying asset's price movement.</li>
<li>Box trades require careful execution consideration of spreads, commissions, margins, and fees, with risks primarily in execution and operations rather than market exposure.</li>
</ul>


Box trades are gaining popularity on the Hong Kong Stock Exchange. These arbitrage strategies exploit price discrepancies in options markets for near risk-free profits.
Long box trades involve simultaneously buying bull call spreads and bear put spreads with identical strikes and expiration dates, creating a fixed payoff regardless of the underlying asset's price movement.
Box trades require careful execution consideration of spreads, commissions, margins, and fees, with risks primarily in execution and operations rather than market exposure.


Box Trades Explained: How Traders Execute Near Risk-Free Arbitrage in Hong Kong's Options Market

China

Industrial and Commercial Bank of China Limited provides banking services. The Company offers deposits, loans, fund underwriting, foreign currency settlement, and other services. Industrial and Commercial Bank of China provides its services to individuals, enterprises, and other clients.

Price Gauge
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ICBC (H) (1398 HK)

EQD | Hong Kong Single Stock Options Weekly December 23 – 27

Trading volumes in single stocks were dominated by call volumes, with the Put/Call ratio at its 3rd lowest level since early November. We...

John Ley

EQD | Hong Kong Single Stock Options Weekly Dec 30 – Jan 03

Single stock put volumes are on the rise, pushing the put call ratio over 1 for the first time since November. Heavy put trading in financial...

John Ley

EQD | HSBA Vs ICBC (5 HK,1398 HK): Trade a Relative Value Vol Spread

A relative value vol trade within the Chinese Banking sector. We look at a trade HSBC and ICBC and consider a negative real estate scenario.

Simon Harris

HK Connect SOUTHBOUND Flows (To 5 Jul 2024); SOE Bank and SOE Petro-Energy Flows Dominate

SOUTHBOUND flows this week were net positive every day. SOE Banks and SOE Energy names absolutely dominated the net buy list. The rest is kind of a...

Travis Lundy

Box Trades Explained: How Traders Execute Near Risk-Free Arbitrage in Hong Kong's Options Market

JD.com (9618 HK) Earnings Call tonight 8:00 pm HKT. After yesterday's 3.06% move up, the ATM strike is now 165. Straddles offer an opportunity to...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

EQD | Hong Kong Single Stock Options Weekly December 23 – 27

​Trading volumes in single stocks were dominated by call volumes, with the Put/Call ratio at its 3rd lowest level since early November. We...

John Ley

EQD | Hong Kong Single Stock Options Weekly Dec 30 – Jan 03

​Single stock put volumes are on the rise, pushing the put call ratio over 1 for the first time since November. Heavy put trading in financial...

John Ley

EQD | HSBA Vs ICBC (5 HK,1398 HK): Trade a Relative Value Vol Spread

A relative value vol trade within the Chinese Banking sector. We look at a trade HSBC and ICBC and consider a negative real estate scenario.

Simon Harris

HK Connect SOUTHBOUND Flows (To 5 Jul 2024); SOE Bank and SOE Petro-Energy Flows Dominate

SOUTHBOUND flows this week were net positive every day. SOE Banks and SOE Energy names absolutely dominated the net buy list. The rest is kind of a...

Travis Lundy

Box Trades Explained: How Traders Execute Near Risk-Free Arbitrage in Hong Kong's Options Market

JD.com (9618 HK) Earnings Call tonight 8:00 pm HKT. After yesterday's 3.06% move up, the ATM strike is now 165. Straddles offer an opportunity to...

Gaudenz Schneider

Trading volumes in single stocks were dominated by call volumes, with the Put/Call ratio at its 3rd lowest level since early November. We...

Single stock put volumes are on the rise, pushing the put call ratio over 1 for the first time since November. Heavy put trading in financial...