Defensive strategy on Eramet via put warrants


ERAMET

Defensive strategy on Eramet via put warrants | Photo credits: © Joël Damase / ERAMET

This Wednesday, as part of our section dedicated to derivatives, we are proposing to implement a new strategy, using put warrants, code 259VS and backed by Eramet shares.

After taking advantage of high metal prices, mining groups are now facing a drop in demand with the prospect of a sharp slowdown in growth or even a recession in certain regions. Under these conditions, a further decline in the share price, which has already lost nearly 19% over one month, is likely.

We therefore offer you, through these warrants, to hedge your portfolio: at maturity on September 15, 2023, their exercise price is 62 euros for a leverage effect of 1.2 times.

Quotation range: 0.41 – 0.42 euros.


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