MoveHi- To play the short term rise of the underlying.
Win 100 € if the closing price of the underlying reaches or exceeds the barrier upwards on any day prior to the maturity.
Example
The France Telecom share quotes 20 €. The news on the title are promising. You buy a HitHi option on France Telecom, a 22 € barrier and a maturity in 6 weeks. This product quotes 30 €. If the France Telecom price closes at a level superior or equal to 22 € at any time during those 6 weeks, you will earn 100 €. On the contrary you loose your investment that is 30 €. Please note that during the buy period you may also at any time resiliate your contract.
1. Relevant scenario
2. Trading with technical analysis
The HitHi provides with a maximal reactivity to play the underlying increase, in particular when the price stands between 40 € and 60 €. If the underlying price remains stable, the HitHi depreciates as the probability to reach a barrier diminishes : the "time value" is said to diminish. The time value decay accelerates as the maturity approaches.
Underlying price increase
Passing of time
Volatility increase
The technical analysis is the study of the past evolution of the underlying mainly based on price charts in the prospect of predicting the trend (increase, decrease or consolidation), ampitude and time : support and resistance levels, patterns. The HitHi is adapted for benefiting from an impulsion with an up trend, notably after having exceeded a support level or after the confirmation of a resistance level.