Hello everyone,
I am currently looking into discount certificates and think that they could be an exciting option that I would like to focus on.
A good example is $NKE (+0,27 %) : here we have been in a fairly stable sideways movement for almost 6 months. Let's take the certificate with the WKN SY1ACD. Here we have $NKE (+0,27 %) currently available with a discount of 6%, the cap is $75, i.e. just under 5% above the current price. The certificate matures on 27.06.25. So what can happen now?
1) the price falls: 6% is cushioned, with more corresponding loss (e.g. price falls by 10%, loss amounts to 4%)
2) the price remains stable: the investment makes 6% (discount), i.e. just under 14.5% annualized
3.) the price rises, up to 75$ you take the profit, but then the cap is reached (max. 26% annualized)
All in all, an interesting field in my opinion.
I have two questions:
is my description correct?
Where is the best place to trade discount certificates?
Does anyone here have any experience and can help me?
Thank you in advance for your help!
Best regards
Love player
