Quantitative volatility strategies

AI-driven volatility management

We build a generative model of volatility surface dynamics — to trade the mispricings it finds across US and Hong Kong options markets.

US & Hong Kong options markets Volatility arbitrage · Tail hedging · Analytics
02 — Thesis

Why options markets stay inefficient

  • 01

    Structural volatility

    A multi-polar world produces persistent, not cyclical, volatility across global markets.

  • 02

    Underexploited markets

    US equity options are the world's largest and most liquid. Hong Kong is fast-growing, increasingly institutional, and still visibly inefficient.

  • 03

    Uncorrelated by construction

    Volatility returns arrive precisely when traditional assets struggle.

  • 04

    A moat made of complexity

    Physical and financial volatility arbitrage stays largely undiscovered because modeling and execution are genuinely hard.

Market conditions favor systematic volatility strategies.

03 — Approach

A world model for volatility

Curve and surface dynamics are typically modeled with simplifying assumptions. Our focus is where those assumptions and observed market behaviour begin to diverge.

Model

Generative surface dynamics

Generative models and stochastic control for volatility surface dynamics. Multimodal inputs, non-linear scenario generation.

Identify

Asymmetric reactions

Systematic detection of mispriced options driven by asymmetric market reactions — under- and over-responses to risk events.

Execute

Agentic execution

Long undervalued IV, short overvalued IV, in combination. Fully autonomous agentic backtesting and execution.

04 — Platform

Analytics and trading engine

One engine behind both the fund and the platform — modeling, scenario generation, execution and risk management in a single loop.

Volatility intelligence
  • 01

    Spillover detection

    Cross-market volatility spillovers, surfaced systematically.

  • 02

    Scenario generation

    Implied volatility scenarios across the full surface.

  • 03

    Hedging opportunities

    Options-based hedge identification against existing holdings.

Schematic — model view, not live data.

Trading engine
  • 04

    Two-market coverage

    US and Hong Kong listed options.

  • 05

    Optimization & execution

    Portfolio optimization with smart order execution.

  • 06

    Integrated risk

    Real-time risk management across the book.

Schematic — execution view, not live data.

05 — Engagement

Two ways to engage

Fund

Markq Alpha Fund

Direct management of institutional capital under full regulatory compliance. Volatility arbitrage and portfolio tail hedging.

For insurance companies, funds of funds, family offices and allocators.

The fund is in formation — register interest to be contacted ahead of launch.

Register interest
Platform

Markq Platform — Model as a Service

API access to the volatility engine for traders and institutions. Agentic portfolio optimization, market-making and hedging strategies.

Request platform access
06 — Context

Why institutions need volatility exposure

  • Structural tail hedge

    A standing hedge against tail risk events, not a tactical overlay.

  • Profits when portfolios suffer

    Volatility products pay out precisely when the rest of the book is under pressure.

  • Genuinely uncorrelated under stress

    Market-neutral positioning with continuous two-sided exposure.

Macro tailwind
A multi-polar world generates structural volatility — persistent, not cyclical. The 1940s volatility regime lasted over a decade.

The current window runs 2025–2030 and beyond.

07 — Contact

Institutional enquiries

General
enquiries@markq.ai
Entity
Markq Alpha Limited
Jurisdiction
United Arab Emirates