Protected Investments
A popular investment schema for volatile assets is the idea of purchasing some downside protection in exchange for reduced upside. This type of payoff can also be achieved through a custom vault as below.
Example of a "protected investment structure" or in other parlance, a Structured Note
| Days To Expiration | Strike Price | Position | Option Type |
|---|---|---|---|
30 | 1700 | -1 | Put |
30 | 1850 | 1 | Put |
30 | 1950 | -1 | Call |
In this example, the purchasers of this structure would receive protection from down moves below 1850 (and above 1700) in exchange for sacrificing upside above 1950 for the next 30 days.
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