Tesla: Volatility creates huge returns or buffers

Tesla: Volatility creates huge returns or buffers

Tesla stock (ISIN US88160R1014) hit a new all-time high of $ 1,794.99, roughly double the price at the beginning of June. At the end of the session, however, the stock turned from positive to negative and closed at $ 1,497 below Friday’s closing price. Still, Elon Musk’s automotive empire is worth about $ 280 billion. Toyota has a market value of $ 200 billion, BMW, Daimler and Volkswagen together create almost 170 billion market capitalization; GM and Ford total $ 60 billion. Volatility is also record-breaking: it also opens up extremely attractive return potential for investors who want to (partially) protect themselves against setbacks.

2 months – 30 percent buffer

Investors who believe that the share will not yield more than 30 percent by mid-September can use the SG’s Quanto Discount Certificate (DE000SB1JVR5) for a purchase price of EUR 1,028.56 to achieve a return of EUR 71.44 or 34. 7 percent pa if the share closes at or above the $ 1,100 cap on the valuation date (9/18/20). A variant of the BNP (DE000PN07LH3) with the same equipment that is not secured against exchange rates brings 37 percent p.a.

2 months – 50 percent buffer

The high volatility makes it possible: high security even with a short term. The BNP’s non-exchange rate-secured discount certificate with the ISIN DE000PX776K9 still generates an impressive 14 percent pa with a buffer of 50 percent, provided the share on September 18, Dollar noted.

5 months – 50 percent buffer

Investors with a longer investment horizon can find a non-exchange rate-secured discount certificate with a cap of $ 800 under Morgan Stanley’s ISIN DE000MC60CH1. At a price of 656.10 euros, the product has a buffer of approx. 50 percent and pays 16 percent per annum if the share closes above the cap on December 18, 20.

CertificateReport conclusion: The discounters are aimed at investors who expect the Tesla share to move sideways and / or a decline in volatility. Smart investors are more likely to invest during US trading hours as the bid-ask spread should be lower due to the higher liquidity of the stock and option markets. Anyone who expects a significant weakness in the US dollar in the short term relies on Quanto versions.

This contribution does not constitute a recommendation to buy or sell Tesla shares or investment products in Tesla shares. We assume no liability for the accuracy of the data.

Author: Thorsten Welgen


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