Strike while the iron is HOT - Low Volatility

On the back of our trade idea from Wednesday and the associated interest on the back of this one, we would like to show you one more idea where investors can take advantage of the general low implied equity volatility in the market (by buying volatility) and high interest rates (SARON at decade high). 

In an outperformance certificate the investor is selling an at-the-money put at 100% and buying more than 100% upside via call options. Generally this allows the investor to be long volatility. Moreover, as the tenor is fixed (1 year in our case) the investor is locking in 15 year high interest rates (in CHF in our example, but also applicable for other currencies).

In this context, we present the following opportunity:  Outperformance Certificates 

 

Historical prices normalized to 100

Source: Vontobel, 08/09/2023

 

Would you like to learn more about Outperformance Certificates? 
Reach out to our deritrade team today. We are here to guide you every step of the way, helping you achieve your financial goals with confidence and efficiency.

• Structured Solutions Financial Institutions Switzerland
  +41 58 283 5741  
  stsobanksch@vontobel.com
     
• Advisory Investment Solutions Team External Asset Managers (EAM)
  +41 58 283 7898  
  AdvisoryTeamZH@vontobel.com