Equity Accumulator Idea
Details:
Underlying: Bank of China
Strike: 89.96%
KO: 105%
Leverage
Tenor: 12 months
Biweekly
Guaranteed period: 1 month
Leveraged
244 days
Accumulator allows investors to buy the relevant stock at strike price.
If the accumulator is leverage basis, investors will buy double the amount on days when spot price is below strike.
So investors must like the underlying stock, willing to buy the stock at strike price and do not mind buying more when price is below strike.
Equity accumulator can be very high risk. But the risk can be mitigated by investing only reasonable amount.
Underlying: Bank of China
Strike: 89.96%
KO: 105%
Leverage
Tenor: 12 months
Biweekly
Guaranteed period: 1 month
Leveraged
244 days
Accumulator allows investors to buy the relevant stock at strike price.
If the accumulator is leverage basis, investors will buy double the amount on days when spot price is below strike.
So investors must like the underlying stock, willing to buy the stock at strike price and do not mind buying more when price is below strike.
Equity accumulator can be very high risk. But the risk can be mitigated by investing only reasonable amount.
Comments
Post a Comment