Market volatility spiked this week as the VIX index surged, driven by a correction in US technology stocks. In 2024, one thing seems certain — uncertainty itself. While some investors may feel unsettled, sophisticated wholesale investors are seeing this as an opportunity to position for growth while protecting capital.
At Stropro, we specialise in structured investments that help our clients navigate volatility and generate enhanced returns. Since launching last year, our clients have successfully weathered COVID-19 market turmoil, outperforming many traditional investments by using products designed for income enhancement and capital preservation.
Why Volatility Creates Opportunities
In financial markets, volatility measures how much prices move over a period. It’s often calculated as the statistical dispersion of returns for a security or index. In calmer markets, volatility is low; in turbulent periods — like now — it rises sharply.
A common benchmark is the VIX index, which tracks expected market volatility based on S&P 500 options. As of September 9, 2020, the VIX hit a one-month high, signalling heightened uncertainty and potential opportunities for strategic investors.
Using Structured Investments to Manage Risk and Capture Returns
The UBS Global Wealth Management CIO, Mark Haefele, recently advised:
“Make use of structured investments to add asymmetric exposure to stocks, e.g., with a degree of capital protection.”
This is exactly the approach we take at Stropro — providing access to a diverse range of structured products that embed complex derivative strategies into simple, tradeable investment solutions.
One of the most effective strategies in times of uncertainty is “selling volatility” — profiting from heightened market swings. For most investors, executing this directly can be complex. Stropro simplifies the process by embedding the strategy into professionally structured notes listed on our platform.
Current Investment Idea: Technology Basket with Capital Protection
We are currently offering a structured investment linked to a basket of large-cap US technology stocks — Apple, Google, Microsoft, and Facebook.
Key Features:
- 14.3% p.a. return (potential 42.9% cumulative over 3 years)
- Capital protected as long as none of the four stocks fall more than 35% from their initial level at maturity
- Exposure to market leaders benefiting from long-term tech trends
- Ability to profit from volatility while limiting downside risk
This product is designed for investors who want growth potential with a protective buffer — ideal in today’s volatile market environment.
Why Consider Structured Investments Now?
- Enhanced returns in high-volatility conditions
- Defined risk parameters through capital protection features
- Access to institutional strategies without complex execution
- Diversification into multiple market-leading companies
If you would like to learn more about this investment or explore other strategies to navigate volatility, register with Stropro or contact our investment desk.
Author: Ben Streater, Chief Product Officer, Stropro
This article is for educational purposes only and does not constitute personal financial advice. Market conditions may change, and past performance is not indicative of future results.
