BYD's Volatile Price Action Post Earnings Puts Focus on 5x Long & Short DLCs
$BYD COMPANY(01211)$ released its earnings on Friday (27 March), reporting a 19% drop in profits — its first annual decline in four years as China’s ongoing EV price war continues to compress margins. Strong competition among domestic EV makers and tighter regulatory oversight have further pressured the world’s largest EV manufacturer.
BYD shares initially fell as much as 5% at the open on Monday (30 March), lifting the BYD 5x Short DLC up +25% while the BYD 5x Long DLC fell by a similar magnitude.
Shortly after, BYD rebounded sharply and pared losses and is currently up 0.09% as of morning session close. While the BYD 5x Short DLC gave up almost of its gains, the BYD 5x Long DLC gained around 21% from the morning low of S$0.43 to close at S$0.52 as of morning session close.
Other EV counters traded lower in the morning session, with $NIO-SW(09866)$ down over 2.5% and $XPENG-W(09868)$ down 4.6%. Amplifying the return, the NIO 5x Long DLC fell 13%, while the XPeng 5x Short DLC rose 23%, with the XPeng 5x Long DLC declining a similar magnitude.
With heightened volatility expected as more HK-listed companies report earnings and global markets remain choppy, investors may look to capitalize on these moves using DLCs. Short DLCs allow investors to benefit from further downside. Long DLCs enable investors to participate in potential rebounds or corrections from market overreactions, like BYD's intraday reversal.
See the full list of DLCs on dlc.socgen.com
This advertisement has not been reviewed by the Monetary Authority of Singapore. This advertisement is distributed by Société Générale, Singapore Branch. This advertisement 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
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
