Recently, financial products betting on the decline in secondary battery stock prices have been launched one after another. This is due to the increased demand for products that can generate profits even when the stock price drops, in a situation where secondary battery stock prices have soared since the beginning of the year and concerns over overheating have grown. Fall betting products are popular not only for investors who expect secondary battery stocks to fall, but also for investors who own secondary battery stocks. This is because many investors want to use a two-way investment strategy to diversify their risk.
On the 17th, Korea Investment & Securities introduced a new put option equity warrant ( ELW ) for a single issue related to secondary batteries. By stock, POSCO Holdings put option ELW (put warrant) had the most with 21. It is followed by Ecopro BM with 16, Posco Future M with 4, Posco International and LG Chem with 2 each, and L&F with 1.
ELW is a product that allows options to be traded like stocks. The right to buy (call) or sell (put) an underlying asset at a predetermined strike price. A put warrant is an ELW토토사이트 that can sell shares at a fixed price .
For example, let’s assume that company A’s stock, which is currently 10,000 won, will fall, and you buy a put warrant for 1,000 won that you can sell this stock at 8,000 won after 1 year (maturity). If the share price drops to 5,000 won after one year, you can buy it and exercise the put warrant to sell it at 8,000 won. In this case, the investor gets an investment profit of 2,000 won by subtracting the cost of purchasing the put warrant (1,000 won) from the stock price difference (3,000 won).
However, it should be noted that in the case of put warrants, if the stock price does not fall below the strike price before maturity, you may suffer a loss equal to the maximum put value. In the above example, if company A’s shares reach 9,000 won after one year, there is no need to exercise the put warrant. This is because the share price is higher than the put warrant strike price. In this case, the investor suffers a loss of 1,000 won, which is the cost of buying the put warrant.
An inverse exchange-traded fund ( ETF ), which bets on the decline of the secondary battery industry for the first time in Korea, is also scheduled to be launched. KB Asset Management plans to launch the ‘ KBSTAR Secondary Battery TOP10 Inverse iSelect’ ETF in mid-September. An ETF that tracks the returns of the top 10 companies by market capitalization in the reverse direction by 1x among secondary battery-related stocks . Ecopro, Ecopro BM, LG Energy Solutions, POSCO Future M, Samsung SDI , SK Innovation, Korea Zinc, L&F, Cosmo Advanced Materials, and SK IE Technology are incorporated.
In the meantime, individual investors who want to invest in the decline of secondary battery-related stocks have a high proportion of KOSDAQ 150 index inverse ETFsIt was possible to invest only in the secondary battery industry, but it was possible to place downside bets only on the secondary battery industry.
Meanwhile, stocks related to secondary batteries, which have risen sharply since the beginning of the year, are in a lull after peaking at the end of last month. According to the Korea Exchange on the 25th, EcoPro, which rose to 1,539,000 won on the 26th of last month, fell to 1.2 million won in August. Compared to the beginning of August, the fluctuation rate is 4.31%. In the KOSDAQ market during this period, Ecopro BM fell 20.41% and L&F fell 19.81%. In the stock market, POSCO Holdings fell 9.81%, while POSCO International and POSCO Future M fell 10.88% and 11.01%, respectively. LG Energy Solutions and LG Chem also fell by 10%.
An official from a securities company said, “The long-term growth potential of the secondary battery industry, which has emerged as one of Korea’s leading industries along with semiconductors, is great, but many investors expect a short-term correction in the stock price that has soared recently.” You can bet on a stock price decline, but in a situation where there are not many individuals who actually invest using it, demand for put ELWs or inverse ETFs that can be traded like stocks through mobile trading systems ( MTS ) is increasing.”