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Strategies & Market Trends : The Art of Investing

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Jan 6 4:00 PM EST

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From: Sun Tzu	1/7/2022 2:33:12 PM
	of 10721

Market tid-bit: There have been big structured derivatives sold for Ark funds. They typically take the form of paying out 40% on top of the performance of the worst performer of the top 3 Ark funds. The break even point has already been reached, meaning that if the Ark funds keep going down, those big investors will lose money. The options are of European variety, which means they are not exercisable until expiration in about 2 years from now. So there is lots of time left. On the other hand, if Ark keeps going down, then it will have to double next year to just make the break even point. This is something worth keeping at the back of your mind. Depending on where the Ark funds land near the expiry, one should not be surprised to see an upspike before the options expire.

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