FinishLo- To play the downward trend with less reactivity than the MoveLo.
Win 100 € if the closing price of the underlying reaches or exceeds the barrier downwards on the maturity date.
Exemple
Concrete case
The CAC40 indice quotes 3700 points. You think that the indice price wil go up. You buy 40 ? a FinishHi option on the CAC40 with a barrier at 3750 points and an expiry in 2 weeks. If on the expiry date the price of the indice closes at a level equivalent or superior to the 3750 points you receive 100 ?. Otherwise you loose your initial investment that is 40 ?. Please note that during the buy period you may also at abny time resiliate your contract.
1. Relevant scenario
2. Trading with technical analysis
The FinishLo provides a high to play the fall of the underlying price, in particular when the price stands between 40 € and 60 €. It may constitute an alternative to the HitLo in the extent that for a same barrier and the same maturity its price is lower. As for FinishLo and Lasso, the FinishLo behaviour varies depending on whether the underlying price is lower to the barrier (In the money FinishLo) or greater than the barrier (Out of the money FinishLo).
FinishLo Position
Underlying Price Fall
Passing of time
Volatility increase
In the money
Out of the money
In the money : the underlying price is superior to the barrier
Out of the money : the underlying price is lower than the barrier.
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 FinishLo is adapted for benefiting from an impulsion with a down trend, notably after having exceeded a support level or after the confirmation of a resistance level.