An Equity Linked Option Note (ELON) is an instrument that allows you generate an income from your favourite stocks.
ELONs have a fixed maturity date and the return is shown as % per annum calculated against the theoretical notional.
Our platfom provides trades which are algorithmically generated ELON ideas. These are optimized for clients who are looking for an easy and self-reliant process to trade ELON(s).
To generate an income from the premium received. Investors must be comfortable buying the underlying instrument at the agreed strike price in the future.
While the premium income is guaranteed over the lifetime of the ELON, an investor is also committed to buy the underlying instrument at the determined strike price. If at expiry the market price trades below the strike at which the investor is committed to buy, she/he will experience a mark-to-market loss