To The Moon

Review of META Performance and Related DLC Based on Previous Analysis

META Price Performance:

In my earlier post on $Meta Platforms, Inc.(META)$ , I highlighted the support level at $585. Since then, META's price has surged by 7.65%, reaching $630.20 as of the latest update. This significant upward movement from the identified support level reinforces the importance of technical levels in analyzing potential price movements.

DLC Performance:

3x amplified gain with DLCs

For investors who traded the 3x Long DLC for META ( $META 3xLongSG261006(USDW.SI)$ ), the performance was amplified due to the leveraged structure of the product. Based on the attached data:

• The DLC price was trading average $3.95 on the date of posting. The same DLC is trading at $4.79 at the time of posting.

• This aligns with the cumulative return of +20.34% for the DLC compared to META’s +6.59% over the past 5 trading days, as shown in the performance chart.

Observations:

1. Price Correlation:

   The DLC's performance reflects its 3x leveraged nature, amplifying META's price movement. While META rose by 6.59%, the DLC achieved a higher return due to the leverage factor.

2. Leverage Effect:

   The compounding effect over multiple days contributed to the DLC's larger percentage gain. This demonstrates how leveraged products can magnify returns in line with the underlying asset’s movement.

3. Considerations for Traders:

   The DLC’s performance is tied to META's daily price changes and leverages them by a factor of three. While this can lead to significant gains when the underlying asset moves favorably, it also increases risk in adverse market conditions.

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For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.