Maxi Cash Collect with Block and Unity Software: very last callThe certificate NLBNPIT1BVR9 is at its sunset but can still make a profit if you can handle stock volatility.
Link to JustCertificate justcertificate.com
Unity Software is the "worst of" with less than 20% margin above the coupon barrier. Unity Software specializes on gaming and VR software. Stock price and P/E have been low compared to competitors since 2022. The price reversed in July 2024 with a crescent min/max along the "classical" uphill trend line after breaching the two secondary POCs at 16 and 22 USD, indicating traders' interest in these prices. At 30 USD is the major POC. Price retreated from a weekly candle's attempt to break the major POC. This price level may act a strong resistence. Investing.com models value the stock at 28 USD.
Block offers commerce and payments-focused professional & Commercial Services.After reaching the minimum price of 40 USD circa in August 2024, which is near the certificate coupon barrier, it is advancing along an ascending trend line and has broken the primary POC of 65 USD, but the psychological threshold of 100 USD is holding it back. Now it trades around the primary POC touching the trend line, which is crucial for future movements.
At the moment of this post, the certificate is priced much below the parity at 79 Euro and expires on May 13th, with a potentially attractive profit of nearly 30% including a significant last coupon, assuming the certificate barrier is not breached.
The investment's worth should be carefully considered because the very high volatility and beta-correlation (above 2) of the underlying stocks increase the risk of hitting the barrier at any time before expiration. A margin of 20% above the barrier may not be certain for such underlying stocks.
