Derivatives and Quantitative Strategist

Gaudenz Schneider

Macroeconomics

<ul>
<li>The Reserve Bank of India (RBI) is set to announce a monetary policy decision on Wednesday 9 April 2025. </li>
<li>
Market Expectations: The market anticipates a 25-basis-point rate cut, supported by a strong consensus. However, the RBI has surprised markets in 28% of its rate decisions over the past decade.</li>
<li>
Index Sensitivity to Rate Decisions: Historical data shows the <a href="https://www.smartkarma.com/entities/nse-nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">NSE Nifty Bank Index </a>reacts more significantly to RBI announcements than the <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY 50 Index</a>.</li>
</ul>


The Reserve Bank of India (RBI) is set to announce a monetary policy decision on Wednesday 9 April 2025. 

Market Expectations: The market anticipates a 25-basis-point rate cut, supported by a strong consensus. However, the RBI has surprised markets in 28% of its rate decisions over the past decade.

Index Sensitivity to Rate Decisions: Historical data shows the NSE Nifty Bank Index reacts more significantly to RBI announcements than the NIFTY 50 Index.


RBI Rate Decision: Impact on Nifty 50 and NSE Banks, Insights and Strategies

<ul>
<li>
Central Bank Rate Decisions in Australia, India, and South Korea.</li>
<li>
Tariffs: US reciprocal tariffs effective from 2 April; secondary tariffs are now a factor.</li>
<li>
Holidays: Good Friday is an exchange holiday in Hong Kong, Australia, India, and the US. Several other national holidays throughout the region.</li>
</ul>



Central Bank Rate Decisions in Australia, India, and South Korea.

Tariffs: US reciprocal tariffs effective from 2 April; secondary tariffs are now a factor.

Holidays: Good Friday is an exchange holiday in Hong Kong, Australia, India, and the US. Several other national holidays throughout the region.


Equity Derivatives

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

<ul>
<li>Over the past five trading days, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> multi-leg option strategies showcased a variety of approaches. Strategy highlights and volatility context are provided.</li>
<li>With short-term implied volatility below its median, long volatility strategies dominate, with a balanced mix of bullish and bearish positions. </li>
<li>Open interest spread across monthly and quarterly expiries, with some notable strategies taking advantage of longer expiration dates, and a steep negatively sloped skew $475.</li>
</ul>


Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights and volatility context are provided.
With short-term implied volatility below its median, long volatility strategies dominate, with a balanced mix of bullish and bearish positions. 
Open interest spread across monthly and quarterly expiries, with some notable strategies taking advantage of longer expiration dates, and a steep negatively sloped skew $475.


Tencent (700 HK): Volatility Plays and Skew Top Trades

JD.com, Inc. is an online direct sales company in China. The Company offers a wide selection of products through its website and mobile applications. JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

<ul>
<li>This Insight analyses <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.</li>
<li>
Bearish strategies dominate trading activity, outnumbering bullish ones by more than 3:1, with long volatility structures and calendar/diagonal spreads being prevalent.</li>
<li>
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. </li>
</ul>


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. 


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

<ul>
<li>
Australia: RBA rate decision on 1 April. Expect no change.
</li>
<li>
Japan: Nikkei 225 rebalancing effective 31 March at the close.</li>
<li>
US reciprocal tariffs will keep everyone on their toes on 2 April.</li>
</ul>



Australia: RBA rate decision on 1 April. Expect no change.


Japan: Nikkei 225 rebalancing effective 31 March at the close.

US reciprocal tariffs will keep everyone on their toes on 2 April.


Market Movers: Key Dates at a Glance (31 March- 6 April)

Financial Economist with over 20 years of investment experience across all asset classes. He has worked as a sell-side derivatives researcher and trader on one of London’s largest trading floors, and as a structurer and portfolio manager for the buy-side in Switzerland. As head of Quantitative Strategy at an Asian WealthTech company, Gaudi and his team designed over 50 distinct investment strategies for institutional clients in Australasia.

Gaudi’s analysis follows a scientific approach based on empirical research and quantitative evidence.

Gaudenz Schneider
Derivatives and Quantitative Strategist

RBI Rate Decision: Impact on Nifty 50 and NSE Banks, Insights and Strategies

The RBI is expected to announce a rate cut, but historical data shows markets can be surprised by their decisions. Nifty Bank Index reacts more...

Gaudenz Schneider

The Month Ahead: Key Events in April

Central banks in Australia, India, and South Korea make rate decisions; US implements reciprocal tariffs on April 2; Good Friday holiday in Hong...

Gaudenz Schneider

Tencent (700 HK): Volatility Plays and Skew Top Trades

Strategies show dominance of long volatility approaches with a mix of bullish and bearish positions, taking advantage of longer expiration dates...

Gaudenz Schneider

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

Analysis of JD.com option strategies on HK Exchange: Bearish strategies dominate, long tail events with minimal upfront cost target significant...

Gaudenz Schneider

Market Movers: Key Dates at a Glance (31 March- 6 April)

RBA expected to keep rates steady, Nikkei 225 rebalancing in Japan, India shifting its option expiration day, Exchange Holidays in India and...

Gaudenz Schneider

RBI Rate Decision: Impact on Nifty 50 and NSE Banks, Insights and Strategies

​The RBI is expected to announce a rate cut, but historical data shows markets can be surprised by their decisions. Nifty Bank Index reacts more...

Gaudenz Schneider

The Month Ahead: Key Events in April

​Central banks in Australia, India, and South Korea make rate decisions; US implements reciprocal tariffs on April 2; Good Friday holiday in Hong...

Gaudenz Schneider

Tencent (700 HK): Volatility Plays and Skew Top Trades

Strategies show dominance of long volatility approaches with a mix of bullish and bearish positions, taking advantage of longer expiration dates...

Gaudenz Schneider

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

​Analysis of JD.com option strategies on HK Exchange: Bearish strategies dominate, long tail events with minimal upfront cost target significant...

Gaudenz Schneider

Market Movers: Key Dates at a Glance (31 March- 6 April)

​RBA expected to keep rates steady, Nikkei 225 rebalancing in Japan, India shifting its option expiration day, Exchange Holidays in India and...

Gaudenz Schneider

The RBI is expected to announce a rate cut, but historical data shows markets can be surprised by their decisions. Nifty Bank Index reacts more...

Central banks in Australia, India, and South Korea make rate decisions; US implements reciprocal tariffs on April 2; Good Friday holiday in Hong...

Analysis of JD.com option strategies on HK Exchange: Bearish strategies dominate, long tail events with minimal upfront cost target significant...

RBA expected to keep rates steady, Nikkei 225 rebalancing in Japan, India shifting its option expiration day, Exchange Holidays in India and...