BlockBeats News, May 26th - Rising tech stock guru Serenity reviewed the successful profit from volatility arbitrage on Korean index options, earning the title of "Small-Cap Tech Stock God." Serenity stated that the long call option trading logic for EWY (iShares MSCI Korea ETF), proposed as early as February 13th, has been fully realized. Currently, a gain of over 300% has been achieved, with the position receiving over 4x returns. Serenity believes that the components of EWY are mainly Samsung Electronics and SK Hynix, both major memory giants known as high-volatility assets. The estimated implied volatility is 65-80%, but the entire index option was severely undervalued, with a mispricing of only about 32%, significantly lower than Google and Amazon. Market makers overly relied on historical low volatility data, overlooking the new normal of high volatility brought by the AI memory supercycle.

Serenity stated that the profit mainly came from the underlying price increase combined with volatility repricing. During this period, despite the market being filled with energy crises and concerns about a Korean stock market bubble, the memory supercycle continued to materialize, with Samsung and SK Hynix aggressively printing money.

BlockBeats Note: Serenity is a senior trader with significant influence on the Reddit forum WallStreetBets (WSB) and has achieved a year-to-date investment return rate of over 38x. Serenity's core research results are consistently shared for free, focusing on key links in the NVIDIA AI chip industry chain. By thoroughly analyzing the indispensable "screw" components in the chip manufacturing and packaging process, accurately identifying critical bottlenecks in the supply chain (Chokepoints), and leveraging this to explore upstream targets with scarcity and bargaining power.