HOUSE_OVERSIGHT_023598.jpg
927 KB
Extraction Summary
1
People
8
Organizations
3
Locations
2
Events
0
Relationships
4
Quotes
Document Information
Type:
Financial research report / market analysis
File Size:
927 KB
Summary
This document is page 24 of a 'Global Equity Volatility Insights' report dated June 6, 2017, produced by Bank of America Merrill Lynch. It contains 'Table 6', which summarizes open financial trades as of June 5, 2017, focusing on options strategies for entities like Tencent, FANG stocks (Facebook, Amazon, Netflix, Google), and various market indices. The document bears the Bates stamp 'HOUSE_OVERSIGHT_023598', indicating it was part of a document production for the House Oversight Committee.
People (1)
| Name | Role | Context |
|---|---|---|
| BofAML Equity & Credit strategists | Strategists |
Mentioned in rationale for trade regarding equities over HY credit
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Organizations (8)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
Creator of the Global Equity Volatility Insights report
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|
| House Oversight Committee |
Implied by Bates stamp 'HOUSE_OVERSIGHT_023598'
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| Tencent |
Subject of a trade recommendation (250/300 strangle)
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| Facebook (FB) |
Subject of ATM calls trade recommendation
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| Amazon (AMZN) |
Subject of ATM calls trade recommendation
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| Netflix (NFLX) |
Subject of ATM calls trade recommendation
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| Google (GOOGL) |
Subject of ATM calls trade recommendation
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| MSCI |
Mentioned regarding an announcement on 20-Jun
|
Timeline (2 events)
Key Quotes (4)
"Hedge the China tech bubble; Tencent unlikely to stand still after a 45% rally YTD"Source
HOUSE_OVERSIGHT_023598.jpg
Quote #1
"Fundamental case to be long EU equities remains intact but stretched bullish positioning could lead to near-term consolidation"Source
HOUSE_OVERSIGHT_023598.jpg
Quote #2
"Stock replace FANG stocks"Source
HOUSE_OVERSIGHT_023598.jpg
Quote #3
"Lever extremely depressed FANG volatility and low correlation to buy upside"Source
HOUSE_OVERSIGHT_023598.jpg
Quote #4
Full Extracted Text
Complete text extracted from the document (1,942 characters)
Table 6: Summary of open trades as of 5-Jun-17
Trade Description Open Date Open Level Expected Trade Term Rationale
Long 1x EEM 3m 97.5% put vs. short ~0.09x units each of 3m 97.5% puts on FXI, EWY, EWZ, EPI, EWT, RSX, EZA, and EWW 1.5% 0.0% 3m Buy EEM puts financed by a basket of EM puts to lever near record low correl
Buy Tencent Jul17 250/300 strangle 22-May-17 2.45% Jul-17 expiry Hedge the China tech bubble; Tencent unlikely to stand still after a 45% rally YTD
Buy A-shares (2823 HK) Jul17 105% call 22-May-17 1.15% Jul-17 expiry Hedge the upside into MSCI announcement on 20-Jun
Buy 1x contract of ESTX50 Jun17 3525, sell 4x contracts of V2X Aug future 22-May-17 1.00% Jun-17 expiry Fundamental case to be long EU equities remains intact but stretched bullish positioning could lead to near-term consolidation
Buy SX5E Dec17 3450-3700 bullish risk reversal vs short IBOXX HY TRS with equal notional sizing 30-May-17 1.17% Dec-17 expiry BofAML Equity & Credit strategists highlight they favour equities over HY credit as div yields have surpassed HY credit yield & equities offer more gearing to rising PMI's, earnings and FCF
Buy 6m ATM calls on FB, AMZN, NFLX and GOOGL 30-May-17 6.9% (FB), 7.2% (AMZN), 9.4% (NFLX), 6.2% (GOOGL) 6m Stock replace FANG stocks
Buy a 6m outperformance call on FANG stocks vs. SPX conditional on SPX> current levels at expiry 30-May-17 3.4% 6m Lever extremely depressed FANG volatility and low correlation to buy upside
Buy HSI Sep17 90% put, sell ASX200 Sep-17 90% put 30-May-17 0.15% Sep-17 expiry HSI is unlikely to outperform if AS51 drops more than 10%; HSI vol below AS51 vol
Trade Description Open Date Open Level Expected Trade Term Rationale
Long 1x EEM 3m 97.5% put vs. short ~0.09x units each of 3m 97.5% puts on FXI, EWY, EWZ, EPI, EWT, RSX, EZA, and EWW 1.5% 0.0% 3m Buy EEM puts financed by a basket of EM puts to lever near record low correl
Buy Tencent Jul17 250/300 strangle 22-May-17 2.45% Jul-17 expiry Hedge the China tech bubble; Tencent unlikely to stand still after a 45% rally YTD
Buy A-shares (2823 HK) Jul17 105% call 22-May-17 1.15% Jul-17 expiry Hedge the upside into MSCI announcement on 20-Jun
Buy 1x contract of ESTX50 Jun17 3525, sell 4x contracts of V2X Aug future 22-May-17 1.00% Jun-17 expiry Fundamental case to be long EU equities remains intact but stretched bullish positioning could lead to near-term consolidation
Buy SX5E Dec17 3450-3700 bullish risk reversal vs short IBOXX HY TRS with equal notional sizing 30-May-17 1.17% Dec-17 expiry BofAML Equity & Credit strategists highlight they favour equities over HY credit as div yields have surpassed HY credit yield & equities offer more gearing to rising PMI's, earnings and FCF
Buy 6m ATM calls on FB, AMZN, NFLX and GOOGL 30-May-17 6.9% (FB), 7.2% (AMZN), 9.4% (NFLX), 6.2% (GOOGL) 6m Stock replace FANG stocks
Buy a 6m outperformance call on FANG stocks vs. SPX conditional on SPX> current levels at expiry 30-May-17 3.4% 6m Lever extremely depressed FANG volatility and low correlation to buy upside
Buy HSI Sep17 90% put, sell ASX200 Sep-17 90% put 30-May-17 0.15% Sep-17 expiry HSI is unlikely to outperform if AS51 drops more than 10%; HSI vol below AS51 vol
Source: BofA Merrill Lynch Global Research. Prices reflective of most recently available data which may be delayed in some cases. "Trade Value" represents current valuation of trades initiated on the "Open Date".
24 Global Equity Volatility Insights | 06 June 2017
Bank of America Merrill Lynch
HOUSE_OVERSIGHT_023598
Bank of America Merrill Lynch
HOUSE_OVERSIGHT_023598
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