​Asia Weekly Flow Report: Contingent Options, Kospi Breaks Out, China Digitals

In this week’s Asia Weekly Flow Report, we focus significantly on how macro funds are cheapening their exposure to underlyings in Asia, either through contingent options or digitals. Despite Korea spot gapping out on Tuesday, flow declined by the end of the week with short-dated vols back to recent lows. China has also seen renewed interest amid speculation that its government will unveil new stimulus measures, although short-dated upside call flow to participate in the trend has not been as large as expected, with a number of investors exploring ways to cheapen their exposure.