Certificates: "Magnificent 7" and semiconductors in focus

View on tech and semiconductor companies

In the case of certificates on individual stocks, much continues to revolve around the "Magnificent 7", i.e. the major US tech stocks Alphabet, Microsoft, Amazon, Apple, Meta, Tesla or Nvidia. However, positioning on semiconductor stocks such as Infineon has also been in high demand recently. The Infineon price had almost doubled since last summer to almost 40 euros, most recently it went down to currently 32.40 euros. Most popular single values are according to Königer Infineon, Tesla, Microsoft, Nvidia and Apple, Kesselhut calls Deutsche Bank, Tesla and Commerzbank.

Interest in discount certificates is also high here. "They just promise a nice sideways yield," notes Königer, naming products on Infineon (<DE000DW6YQU9>), but also LVMH (<DE000DW4L6B0>) and Schneider Electric (<DE000DW3TAF1>). At Société Générale, there is a lot going on in discount certificates on Dutch semiconductor manufacturer NXP Semiconductors (<DE000SV2YFG4>) and ThyssenKrupp (<DE000SV75J79>), and also in capped bonus certificates on Eon (<DE000SV20GC4>). 

Among leveraged products, open-end knock-out calls on Infineon (<DE000HG7VN08>) are in demand, according to Königer. Also popular: call warrants on Tesla (DE000PD98UQ5>, DE000HG60KZ7), Microsoft (<DE000HG3S7G5>), Nvidia (DE000HG9ED33) and Apple (<DE000HG3S3Y7>), as well as bullish but also bearish open-end knock-out products on the tech stocks. "As for Tesla, there is a colorful picture of call (<DE000SH79GK2>) and put warrants," reports Kesselhut. 

"Highly leveraged shorts on Brent."

The oil price has apparently gone too far for some. A barrel of Brent currently costs just under 84 U.S. dollars after 72 U.S. dollars at the end of June. The background is production cuts by Saudi Arabia and falling oil exports by Russia. "We are seeing mainly highly leveraged shorts on Brent," explains Kesselhut. As an example, he cites open-end knock-out puts with knock-out barriers of $97.265 (<DE000SN5PPR1>) and $89.051 (<DE000SQ5HAF2>), respectively. ICF also bets on the oil price, but here sometimes on rising prices, for example with factor 3x long warrants on Brent Crude ICE Rolling (DE000PX3BRT9), sometimes on falling prices, for example with open-end knock-out puts (<DE000DW7WRE3>).

"Also, gold always moves, even if the price doesn't move that much," notes Kesselhut. Bearish and bullish open-end knock-outs are popular, he says. The troy ounce of gold currently costs US$1,900, up from over US$2,000 in early May.

It has become somewhat quieter around cryptocurrencies, as Königer reports. However, the tracker product on Der Aktionär Krypto TSI (CH1171791515) is still one of the highest-turnover individual products at ICF. It tracks a basket of different cryptocurrencies. The most important currency Bitcoin has fallen back below the $30,000 mark, currently at $28,580.

By: Anna-Maria Borse, August 17, 2023, © Deutsche