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Roll stability on the CAC 40


Thanks to negative rates, ultra-accommodating monetary policies and government support, the Paris stock market should continue to rise despite demanding valuation levels. A stability allows a gain of 26% in two months.

The latest stability CAC 40 recommended on this site on November 25 (code: LU2088561381) in “Stock market derivative advice” was reimbursed today at 10 euros with a gain of 37.7% over its purchase price of 7.26 euros. We propose to repeat the operation by selecting a new stability still issued by Société Générale. Lagging behind other indices (Wall Street, Nikkei, Dax), the Paris stock exchange should continue to close its gap to resume with its pre-crisis levels at 6000 points. However, the ratios of valuations start to be stretched to 30.6 and 19.1 times the estimated profits for this year and 2021 (against an average ratio of 14.5 times) and a lot of good news is already in the course: reducing political risk in the United States and the arrival of vaccines. The continued rise of the market Parisian isn’t going to be linear and the start of the year promises to be volatile according to the still chaotic evolution of the epidemic and the rise in power of vaccination campaigns.With stability, it’s all or nothingReason why the selected stability (code: LU2088834028) is issued with a deadline of February 19, 2021 and two terminals located at 5,000 points for the lowest and 6400 points for the highest. The certificate will be reimbursed 10 euros at maturity on condition that the CAC 40 index changes by then to inside the area defined by the two terminals. Given its course purchase, stability is likely to return 25.6% in the space of two month. Watch out for the risk. It is not negligible. The certificate will lose the full value in the event of a top or bottom exit from the CAC 40 of the corridor delimited by the two terminals.Our advice: buy a stability CAC 40 issued by Société Générale (code: LU2088834028); deadline: February 19 2021; limits: 5000/6400 points; price: 7.96 euros; portion: 1.
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