Renewable energy is currently one of the top performers on the stock exchanges and E.ON (DE000ENAG999), as a network operator, sees itself as an active designer and beneficiary of the transformation process: According to E.ON, 20 percent of renewable assets in Europe are connected to its own networks . If you want to include the solid business model in your portfolio, you can benefit from the share’s sideways trend with the right certificate.
Discount strategy: E.ON in March 2021 over 9 euros
The discount certificate from Morgan Stanley with ISIN DE000MC8QKS1 brings a maximum return of EUR 0.29 or 10.5 percent pa at a price of EUR 8.71 if the share is quoted at least at the cap of EUR 9 on February 19, 21 – Otherwise, investors will receive cash compensation. Buffer 5 percent.
Discount strategy: E.ON in June 2021 for 9 or 8.50 euros
The longer-term, otherwise identical strategy for June is available from JP Morgan with ISIN DE000JM54NB9: At a price of EUR 8.38, the product achieves a maximum return of EUR 0.62 or 13.1 percent pa if the share is sold on June 18 .21 closes above the cap of 9 euros, otherwise there is a cash settlement. Buffer 9 percent. The discounter promises more security (11.5 percent) with the same term with the cap of 8.5 euros (DE000JM54N62), but the maximum is Yield slightly lower at 8.5 percent pa.
Income strategy: E.ON in December 2021 over 9 euros
The reverse convertible bond of BNP Paribas with ISIN DE000PD0T397 pays a coupon of 6 percent regardless of the share price at the end of the term (23.12.21). By entering well below par, the return increases to 8.5 percent p.a. if the share is quoted at at least 9 euros on December 17, 21. Otherwise 111 shares will be delivered (1,000 euros / 9 euros, fractions in cash).
CertificateReport Conclusion: Since E.ON shares are not among the most volatile DAX stocks and the calculable business model does not suggest either sharp falls or high growth in the short term, sideways strategies on the money can open up interesting earnings potential.
This article does not constitute a recommendation to buy or sell E.ON shares or investment products based on E.ON Post shares. No liability is assumed for the correctness of the data.
Author: Thorsten Welgen
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