With markets continuing to climb Financial Advisors are looking for new ways to protect clients from downside risk but also participate in the upside. A dual directional note does that. I’ve highlighted how this kind of note works below. Feel free to book a quick Zoom call if you want to learn more about how to put this strategy to work in your portfolio.
Or, if you’re a Financial Advisor who has used this strategy, I’d love to invite you to be a guest on our next #Podcast episode.
Custom Dual Directional Notes
How It Works
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100% participation with a 30% max return at maturity
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15% buffer on the downside
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Absolute return on the downside to the buffer level
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EX: If market is down 10% at maturity, client will be up 10%
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EX: If market is down 20% at maturity, client is down 5%
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EX: If market is up 20%, client will be up 20%
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EX: if market is up 35%, client is up 30% (max return)
| Structure: Buffered Dual Directional | Iteration #1 |
|---|---|
| Tenor : | 2yr |
| Underliers Wof | INDU/NDX/RTY |
| Principal Hard Buffer : ungeared | 15% |
| Principal Barrier Type : | Hard Buffer |
| Upside Participation | 100% |
| Downside Participation | 100% |
| Max Return : | @ Least 30% |
