FinishHi- To play the upward trend with less reactivity than the MoveHi
Win 100 € if the closing price of the underlying reaches or exceeds the barrier upwards on the maturity date.
Example
Concrete case
The CAC40 indice quotes 3700 points. You think that the indice level will go higher. You buy 40 € a FinishHi option on CAC40 with a 3750 points barrier and a maturity in 2 weeks. If on the maturity date, the level of the indice closes at a level equivalent or superior to 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 any time resiliate your contract.
1. Relevant scenario
2. Trading with technical analysis
The FinishLo provides with a maximal reactivity to play the underlying price increase, in particular when its prices stands between 40€ and 60€. It may consititute a good alternative to HitHi in the extent that for a given barrier and the same maturity, its price is inferior. As for FinishLo and the Lasso, FinishHi's behaviour varies depending on whether the underlying price is higher than the barrier (In the money FinishHi) or inferior to the barrier (Out of the money FinishHi):
FinishHi's position
Increase of the underlying
Passing of the 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 inferior to th 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 FnishHi 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.