Serenity Realizes 300% Gains on EWY Call Options via Volatility Arbitrage, May 26

According to BlockBeats, trader Serenity achieved over 300% returns and 4x gains on iShares MSCI Korea ETF (EWY) call options on May 26, successfully executing trading logic proposed on February 13. The strategy exploited significant volatility mispricing: major holdings Samsung Electronics and SK Hynix showed implied volatility of 65–80%, while the index options were underpriced at approximately 32%, comparable to mispricing in major tech stocks.

Serenity attributed profits to dual drivers: underlying price appreciation combined with volatility repricing. The mismatch reflected market makers' over-reliance on historical low-volatility data while overlooking the new normal of elevated volatility driven by the AI memory supercycle.