Li Jin, Director of Faxing Securities (Hong Kong)
From the perspective of product structure, the main difference between the Bull and Bear Card and the Worth Wheel lies in that each Bull and Bear Card has a recovery price, so all Bull and Bear Cards are within the price, while the Worth Wheel can be divided into within the price and outside the price.
Since there is a possibility of compulsory recovery of the Bull and Bear Securities, once the recovery price is reached, the trading will be stopped immediately. Therefore, even if the Bull and Bear Securities are all in the money, the leverage effect provided is still quite high, especially when the price of related assets is closer to the recovery price, the leverage of the Bull and Bear Securities will be greater, which certainly means that the risk will be higher and higher. Therefore, some more aggressive investors will pay special attention to some bull bear securities that are close to the recovery price to take advantage of their high-risk and high return characteristics. Once such opportunities are successfully captured, the return will be multiplied. (II)
