Heng Seng Index Options

C

curtisho

Hi all, I am a new member here. I've been seeing a lot of posts here discussing US stock options, US index options. Just wondering if you guys also trade options on Asian markets, like Nikkei, HSI, etc? I myself trade HSI options and find HSI quite an good underlying to trade(tho the only bad thing is the short trading period) Anyway, good to see to a lot of good posts here and I have been learning a lot from you all. :)
 
what I am looking at is FXI. I heard Chinese Goverment will lauch big stimulus again by infrastructure construction, the tallest buildings or something ...

FXI is trending down. lag behind U.S. market

in 2012, henseng advanced 7.1% so far, shanghai dropped -3.3%

u.s market nasdaq advanced 20%, s&p500 advance 14.5%, dow advanced 8.9%

buy QQQ call , and buy FXI put , you will be in the right direction.

my suggestion is do not trade index. those indeces fluctuate little with very few trending days. becuase there are two many economic data releases.
 
Quote from curtisho:

Hi all, I am a new member here. I've been seeing a lot of posts here discussing US stock options, US index options. Just wondering if you guys also trade options on Asian markets, like Nikkei, HSI, etc? I myself trade HSI options and find HSI quite an good underlying to trade(tho the only bad thing is the short trading period) Anyway, good to see to a lot of good posts here and I have been learning a lot from you all. :)
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I used to trade Asian indices a lot, but lately I found that I want to get a good nights sleep :) Do you trade Kospi options too?
 
I do not trade KOSPI, not quite sure if the liquidity is good tho I saw some HK hedge funds hiring prop-traders to trade KOSPI options. Well yea, another bad thing of trading HSI futures is constant gap up/down affecting by US index futures, really can be a nightmare.
 
Quote from curtisho:

wondering if the market liquidity of KOSPI options is good?
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they are the highest vol options in the world - IIRC in order to trade them you must convert your currency into KRW
 
Quote from FrankSlaughtery:

they are the highest vol options in the world - IIRC in order to trade them you must convert your currency into KRW
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Not true in regards to the conversion, with IB, we don't require our clients to convert beforehand as well extend a margin loan.
 
Quote from FrankSlaughtery:

they are the highest vol options in the world - IIRC in order to trade them you must convert your currency into KRW
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Yes, it's hard to beat Kospi options on liquidity. All atm/otm options are quoted with 1 tick spread in front month.
You don't need to convert to trade if you are with IB. But you would want to convert proceeds back to your home currency after you close a trade.
 
My general experience is that there is tons of opportunities in Asian indices, stand-alone as well as against the ETFs (e.g. FXI vs HSI). I am sure there is even more fun stuff to do in single names.

Problem is that, in general, you have to chose between having a life (i.e. my wife would kick my ass) and trading Asia.
 
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