In what seems like a pretty horrendous investment to me, HSBC is offering a structured note that pays 7% a year as long as AAPL doesn’t fall by more than 7.6%. After the huge run-up in the stock a 7.6% drop in price would be nothing, and to give up the potential upside on this type of deal makes no sense. Of course they tag the offering with a load fee as well to make it that much worse. I’d much rather own high yield bonds than this offering, but when you get something as popular as AAPL stock, these are the types of gimmicks you need to watch out for.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.