​HSCEI 3M-5M Options Finding Attention As Flow Wanes

Investors are showing greater willingness to buy vol in three-month to five-month tenors particularly through calendars in the HSCEI amid a fairly muted flow market following the spike higher in spot late last week. The trades would largely avoid the selling pressure coming from exotic desks in longer-dated maturities, and are attractive from a carry perspective given the inverted term structure.