Asia Pacific Equity Derivatives Strategy Skew Normalization Reinforces Our Consolidation View; Monetizing Elevated Volatility in AI-Exposed Indices; Positioning for Rotation Beyond the AI Bottleneck Trade

Research evidence excerpt

Asia Pacific Equity Derivatives Strategy Skew Normalization Reinforces Our Consolidation View; Monetizing Elevated Volatility in AI-Exposed Indices; Positioning for Rotation Beyond the AI Bottleneck Trade

J P M O R G A N Global Markets Strategy

09 June 2026

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Asia Pacific Equity Derivatives

Strategy

Skew Normalization Reinforces Our Consolidation

View; Monetizing Elevated Volatility in AI-Exposed

Indices; Positioning for Rotation Beyond the AI

Bottleneck Trade

• Single-Stock Skew Normalization Reinforces Our Consolidation View: In Global Equity Derivatives Strategy

AC recent weeks, we have favored call overwriting, delta replacement Tony SK Lee

strategies, and selective index hedges as technicals, positioning, and leverage (852) 2800-8857

within the AI complex became increasingly stretched, leaving the risk-reward tony.sk.lee@jpmorgan.com

of chasing further upside less attractive. Single-stock skew was one of several J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

indicators supporting this view, with skew inversions reaching multi-year AC Haoshun Liu

extremes and highlighting unusually strong demand for upside exposure in a (852) 2800-7736

narrow group of AI beneficiaries. As rates move higher, oil prices rise, and haoshun.liu@jpmorgan.com

liquidity conditions become less supportive, these positioning risks have J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited