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BlockBeats messages, on July 14, options on SK Hynix’s American Depositary Receipts (ADR) began trading on Tuesday on the U.S. options exchange. As of 10:25 a.m. New York time, option trading volume had already reached about 33,000 contracts, with more than two-thirds concentrated in short-dated options expiring this Friday. The most actively traded were call options with a strike price of $185, with volume of about 2,900 contracts. Next were $145 put options. In addition, call options expiring in August with a strike price of $200 were also quite popular, with volume exceeding 1,500 contracts.
Daniel Kirsch, head of options at Piper Sandler, said that traders expect to actively position for short-term trades in SK Hynix’s ADR as it continues to rise this week. “We expect that demand for short-dated, bullish call options will be extremely strong, especially the call options expiring this Friday, and retail investors are very likely to rush into this product quickly.” he said.

BlockBeats report: On July 14, analysts Justin McQueen said that after Fed Governor Waller delivered a somewhat hawkish speech on Monday, suggesting that if the core CPI performance is strong it could support a rate hike following recent hikes, the U.S. June inflation data released on Tuesday instead sent a clear dovish signal.
Data shows that in June, the core CPI month-on-month was flat, falling short of the market’s expected rise of 0.2%. The year-on-year increase was 2.6%, also below expectations. This result significantly weakens the urgency for the Federal Reserve to raise rates further in the near term. In terms of market pricing, expectations for a rate hike in July have clearly cooled. The implied probability of a July rate hike in the interest-rate market has fallen to around 15%, basically back to the level before Waller’s remarks, meaning investors have essentially ruled out a July rate hike. Although this does not mean the possibility of further tightening policies within the year has completely disappeared, the threshold for the Fed to raise rates again has clearly increased.

BlockBeats message: On July 14, U.S. consumer prices in June saw their first decline in six years, and a key measure of underlying inflation remained virtually unchanged, to some extent easing pressure on the Federal Reserve to raise interest rates.
According to data released by the U.S. Bureau of Labor Statistics on Tuesday, the consumer price index (CPI) fell 0.4% from May and rose 3.5% year over year. The core index, excluding food and energy, was unchanged from May and increased 2.6% year over year.
The report shows that as the most severe period of the energy-price shock triggered by the Iran war begins to fade, the June drop in gasoline prices has provided consumers with some relief. Before the Federal Reserve meeting at the end of this month, Fed officials may welcome this data; however, the renewed hostility between the U.S. and Iran has pushed oil prices back up again, which could prolong the inflation impact caused by the conflict.