With a market capitalization of EUR 3.15 billion, the biopharmaceutical oncology and antibody specialist MorphoSys is one of the smaller MDAX stocks. After the share had almost doubled from the March lows of 68 euros by mid-July, the last time the CFO’s departure and a convertible bond issue weighed on the price. MorphoSys shares (DE0006632003) are currently quoted at EUR 93.50 – those who bet on stabilization will find interesting returns on certificates.
Discount strategy with 12 percent buffer (December 2020)
For short-term investors, the discount certificate from HypoVereinsbank with ISIN DE000HX26TA7 offers a safety buffer of 12.1 percent. The difference between the maximum amount (cap) at 85 euros and the price of 82.09 euros results in a potential return of 2.91 euros or 18.4 percent p.a. If the share closes below the cap on December 18, 2020, there is one MorphoSys share.
Bonus strategy with a 20 percent safety buffer (March 2021)
The bonus certificate with cap from BNP Paribas (ISIN DE000PF28EC1) has a bonus amount and cap of 110 euros. If the barrier of 75 euros is never breached by the valuation date (19.3.21), investors receive the bonus and maximum amount. At the purchase price of 96.66 euros, the maximum profit is 13.34 euros, which is a return of 32.2 percent p.a. corresponds. The premium for this strategy is 3.3 percent. If the barrier breaks, a cash settlement will be made.
Income strategy with 7 percent buffer (June 2021)
The SG reverse convertible bond with ISIN DE000SB58K30 pays a coupon of 10.5 percent p.a. regardless of the price development. Due to the entry price just below par, the effective return is 12.4 percent p.a. if the share closes at or above the base price of EUR 87.04 on the valuation date (June 18, 21). Then investors also receive the entire nominal amount back; otherwise they will receive 11 shares according to the subscription ratio (= EUR 1,000 / EUR 87.04, fractions in cash).
CertificateReport Conclusion: Anyone who anticipates moderately rising or at least sideways prices at MorphoSys and is risk-conscious for values from the “second tier” can position themselves against the relatively high volatilities with the discount and bonus certificates and the reverse convertible bond.
This article does not constitute a recommendation to buy or sell MorphoSys shares or investment products based on MorphSys shares. No liability is assumed for the correctness of the data.
Author: Thorsten Welgen
Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that is recognizable as being posted by third parties in the “News” area of this website and does not adopt it as its own. This content can be identified in particular by a corresponding “from” label below the article heading and / or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.