34 percent protection - Infineon with 17 percent opportunity
Infineon shares have recently risen very strongly. With bonus certificates with a cap, investors can generate very high returns even if the upward trend weakens or the share stagnates or corrects.
Boosted by quarterly figures that exceeded experts' expectations and the confirmation of the forecast, Infineon shares made an impressive upward move. While the share was still trading at €27.66 on November 1, 2023, it was 31% higher at €36.25 on December 1, 2023.
If the consistently positive expectations of those analysts who recommend Infineon shares as a buy with price targets of up to €47.50 are fulfilled, the upward trend in the share price could continue.
The investment idea
Investors who are considering an investment in Infineon shares following the positive company news and want to achieve high returns even in the event of a correction following the strong rise in the share price could consider investing in a bonus certificate with a cap as an alternative to buying shares directly.
Bonus certificates with a cap offer high yield opportunities not only when Infineon's share price rises, but also when the share price moves sideways or falls significantly. In return for the attractive sideways opportunities, certificate investors have to forego the unlimited profit potential of the share investment and the dividend payments.
How it works
If the Infineon share never touches or falls below the barrier of 24 euros by the valuation date of the certificate, the bonus certificate with cap will be redeemed on December 30, 2024 with the bonus amount of 40 euros.
The key data
The BNP Paribas bonus certificate with cap (ISIN: DE000PN7MPR7) on Infineon shares has a bonus level and cap of EUR 40. The cap defines the maximum payout amount of the certificate. The barrier activated until the valuation date, December 20, 2024, is Euro 24. At Infineon's share price of 36.25 euros, investors could purchase the certificate at 34.17 euros. The certificate is therefore cheaper than the share.
The opportunities
As investors can currently buy the certificate at EUR 34.17, it offers a gross return of 17.06% in 13 months if the share price never falls by 33.79% to EUR 24 or below by the valuation date.
The risks
If the Infineon share price touches the barrier at Euro 24 by the valuation date and the share is quoted below the cap on the valuation date, the certificate will be redeemed at the closing price of the Infineon share fixed on the valuation date. If this price falls below EUR 34.17, the purchase price of the certificate, investors will suffer a loss.
This article does not constitute a recommendation to buy or sell Infineon shares or investment products on Infineon shares. No liability is assumed for the accuracy of the data.
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The advisor might suggest investing in Infineon's bonus certificate with a cap to consumers seeking high returns, even during a correction. This investment strategy allows investors to profit from the share's sideways movement or a significant fall, albeit with a limited profit potential and no dividend payments. The investor's action tips could include carefully considering the barrier and cap, as well as the valuation date, to maximize profit potential with minimal risk. By choosing this Infineon investment option, stock traders may diversify their portfolio and potentially enhance their overall investment returns.
Source: www.ntv.de
