Discount Call Warrant

Underlying: WTI Crude Oil Future (NYMEX Front Month Contract) SSPA/EUSIPA Product Type: (2110) Valor: 55295194 / ISIN: CH0552951946

Last update 27.11.2020
  • Bid

    1.48 USD
    Volume: 100

Key figures

Upper strike41.45 USD
Lower strike65.00 USD
Bid - Ask spread-- / --
Days to expiry535

Product calendar

Fixing date01.07.2020
Last trading date17.05.2022

UBS Discount Warrants

With UBS Discount Warrants, investors who are willing to take risks can already profit from small price movements of the underlying asset (e.g. equities, indices, currency pairs, interest rates, commodities). UBS Discount Call and Put Warrants are much like standard Warrants. The difference is that there are Discount Warrants at discount prices. Discount Warrants thus are cheaper to buy than conventional Warrants, although earnings are subject to an upper limit (cap).

The price of a Discount Warrant behaves differently from a traditional Warrant during the term. If the underlying assets stay within a fairly narrow corridor, investors can capitalize on price movements with Discount Warrants in much the same way as with conventional Warrants – except they pay less and so use more leverage. To generate the same profit with a traditional Warrant, the price movement must be much more drastic. But watch out: if the values of underlying assets change more drastically than expected in the right direction (for the investor), the earnings potential with Discount Warrants is limited. In turbulent periods, investors are generally better off with conventional Warrants.

Investors should also keep in mind that the leverage also as an effect in the undesired price direction of the underlying asset, so that the invested capital could be lost (total loss possible) During the term, factors such as implied volatility, interest rates, the residual term and any dividends could also have an influence on the value of Discount Warrants in addition to the price of the underlying asset. This influence can be positive as well as negative. In addition, investors must take the issuer risk into consideration, since loss of the invested capital could occur if UBS AG becomes insolvent, regardless of the performance of the underlying asset and other market parameters.

You can find a more detailed product description in our brochure "Knowledge in a nutshell".