MoveAny- To play a strong instability of the underlying.
Win 100 € if the closing price of the underlying reaches or exceeds one of the barriers upwards or downwards on any day prior to the maturity.
Example
The Total share quotes 54 ?. At a few days from important publications on the firm, the uncertainty grows and lets you think that the security will shift importantly either up if the news are good or down if the news are bad. You buy "HitAll" Total options, with barriers of 50 and 57 ? and a maturity in 2 weeks. This product costs 33 ?. If at any time during those 2 weeks the price of Total closes at a level superior or equal to 57 ? or at a level lower or equal to 50 ? you will earn 100 ? by bought option. If the contrary occurs, you loose your investment that is 33 ? by bought option. 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 HitAll provides a maximal reacitivity to play an important variation of the underlying in the short term, in particular when its prices stands between 40 € and 60 €. It benefits notably from the increase of the option implicit volatility which reflects market anticipations regarding the amplitude of the future variations of the asset. On the contrary, if the underlying price remains stable the HitAll depreciates rapidly because the probability of reaching one of the barriers diminishes : we say that the "time value" diminishes. The decay of the time value accelerates as the maturity approaches.
Approch from a barrier
Passing of time
Volatility Increase
The HitAll provides with a maximum reacitivity to play an important variation of the underlying in the short term, in particular when the price stands between 40 € and 60 €. He benefits in particular from an increase of the implicit volatility of the options, which reflects market anticpations as for the amplitude of the future variations of the asset. On the contrary if the underlying price remains stable, the HitAll depreciates rapidly because the probability of reaching one of the barriers diminishes : we say that the time value diminishes. The time value decay accelerates as we get nearer to the maturity.