In the ever-evolving landscape of financial markets, the introduction of new Stock Options for companies like Solvay and Syensqo on Euronext Brussels marks a significant development for investors and traders alike. Stock Options, which offer the right but not the obligation to buy (call options) or sell (put options) a stock at a specified price within a certain period, are vital tools for managing risk, generating income, and speculating on market movements. This article delves into the significance of these new options, strategies for trading them, and their potential impact on the broader market.

Solvay and Syensqo Stock Options contract specification summary

A quick overview of the Solvay and Syensqo Stock Options contract specifications

• One Stock Option for Solvay and Syensqo normally equals rights over 100 underlying shares.
• Solvay and Syensqo Stock Options are listed and traded in Euros.
• The options are American style which means that the holders of long positions are entitled to exercise their options before the expiration date.
• Options expire on the third Friday of the expiry month. Trading ceases that day at 17:30 CET. If the third Friday is not a business day, the Last Trading Day shall normally be the last business day preceding the third Friday.
• Solvay and Syensqo Stock Options are settled by physical delivery of 100 shares.

The options are traded under the following symbols and codes:

Consult the instrument pages on our Live website for the detailed contract specifications.

Solvay stock options – market quotes and contract specifications

Syensqo stock options – market quotes and contract specifications

Investment opportunities for Solvay and Syensqo options

The entry of Solvay and Syensqo into the underlying values for stock options introduces new opportunities and risks.

Diversification and hedging

Options allow investors to diversify their portfolios beyond traditional stock and bond investments. By incorporating options, investors can protect their portfolios against market downturns. For example, buying put options on Solvay or Syensqo shares can serve as insurance, hedging against potential declines in the underlying stock prices.

Income generation

Selling call options on stocks that investors already own (a strategy known as covered call writing) can generate additional income through the premiums received. This strategy can be particularly appealing in flat or slightly bullish markets, where the underlying stocks are not expected to make significant gains.

Leverage and speculation.

Options provide leverage, as they allow investors to control a larger amount of stock with a relatively small investment (the premium). This can amplify gains but also increases the risk of losses. Speculators might use Solvay or Syensqo options to bet on the direction of these companies' stock prices with a limited downside risk.

Market implications Solvay and Syensqo options

The addition of new underlying values like Solvay and Syensqo can also have broader market implications:

1. Volatility:
   
   The introduction of options on these shares could increase their volatility, especially around key events, or announcements.
2. Liquidity:
   
   Increased trading activity in options could improve the liquidity of Solvay and Syensqo shares, making them more attractive to a broader range of investors.
3. Price Discovery:
   
   Options markets can aid in the price discovery process by reflecting investor sentiment and expectations about the future price movements of the underlying shares.

Navigating risks

While options trading on Solvay and Syensqo shares can be lucrative, it also comes with its set of risks. The most prominent is the potential for loss, as options can expire worthless, resulting in a total loss of the premium paid. Furthermore, the leverage effect in options trading can amplify losses as well as gains. Traders must also consider the impact of implied volatility, time decay, and changes in market conditions.

The significance of new Stock Options on Euronext Brussels

Euronext Brussels is a primary stock exchange in Belgium and a component of the Euronext group, which is the largest stock exchange in Europe. The introduction of new Stock Options for companies like Solvay, a global leader in chemicals and materials, and Syensqo, potentially a high-growth tech firm, provides traders and investors with more instruments to tailor their investment strategies to their specific risk tolerance and market outlook.

Stock Options for Solvay and Syensqo on Euronext Brussels open a realm of possibilities offering tools for hedging, speculation, and income generation. However, the successful use of these instruments requires a thorough understanding of options strategies and a clear assessment of risk tolerance. As with any investment, due diligence and a well-thought-out plan are paramount to navigating the options market effectively. With these new offerings, Euronext Brussels is set to become an even more vibrant and diverse financial marketplace, catering to the needs of a broad array of market participants.

On 25 January 2024, Euronext held its first Women in Trading cocktail, a networking event in partnership with Equileap, the leading data provider for gender equality and diversity & inclusion.

Over 40 participants from the trading and asset management communities attended the evening event, an initiative created to further support the position of women in finance.

The Euronext Women in Trading cocktail was the occasion:

• to create a new space to foster sharing, learning and networking opportunities
• to underline Euronext’s commitment to empowering women and reshaping finance to be more inclusive
• to share insights alongside our partner Equileap on gender equality in the financial markets and present our gender equality indices, recently launched together.

Watch the Euronext Women in Trading cocktail ‘best of’ video

Charlotte Alliot, Euronext’s Group Head of Financial Derivatives and 2023 winner of a European Women in Finance Award; Delphine d’Amarzit, CEO of Euronext Paris; Diana van Maasdijk, Co-Founder and CEO of Equileap and Nitharshini Thevathas, Index Business Developer at Euronext shared their experience and thoughts.

Partnership with Equileap

Equileap is a leading provider of data and insights on Diversity, Equity, and Inclusion (DEI), allowing investors to align their investments with their values.

Equileap assesses and ranks companies around the world on gender equality and diversity & inclusion using a unique research methodology.

Last year Euronext and Equileap launched the Euronext^® Equileap Gender Equality Indices.

More about Euronext’s ESG commitment

Euronext Women in Trading and the launch of Euronext^® Equileap Gender Equality Indices are part of Euronext commitment to drive investment in innovative, sustainable products and services and inspire and promote tangible sustainable practices

Learn more about how we empower sustainable growth

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Key Principles of Euronext Developed World Indices

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The Euronext Developed World indices provide exposure to the world’s leading developed markets and intend to represent the dynamism of the global economy offering a diverse array of investment opportunities, covering 23 developed countries.

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The Euronext Developed indices are selecting and weighing companies based on their Free Float Market Capitalisation. Focusing on companies’ public ownership ensures the fair representation of the benchmark. It provides a more accurate e accurate reflection of market movements and highlights stocks that are actively available for trading.

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The Euronext® Developed World Indices provide opportunities for the creation of a wide range of investment vehicles, such as ETFs, funds and structured products.

Learn more about Euronext Developed World Indices:

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ELITE is the European network for private companies, which accelerates the process to access private and public capital markets. Its mission is to support companies by connecting them to capital, skills and network to drive their sustainable growth in the long term.   

Launched in 2012 by Borsa Italiana, ELITE is now part of the Euronext Group. In 2023, ELITE expanded its network to companies in Portugal, the Netherlands and France.

Now in 2024, ELITE has announced a transformation in its visual identity. The revamped logo aligns with Euronext's overarching branding strategy, in a move towards visual cohesion and brand consistency.

For ELITE, the change means an evolution within the Euronext family without changing the core values and commitment that clients have come to rely on. While embracing its fresh new look, ELITE’s dedication to excellence, innovation and empowerment of companies remains unwavering.

This strategic visual transformation is more than a change in appearance: it is a commitment to brand strength. The aligned visual elements will resonate more powerfully across various media channels, creating a lasting impact on clients, partners, and stakeholders alike. The journey toward stronger, more consistent and recognisable brands for both Euronext and ELITE begins here.

Today is a significant day for ELITE as we unveil our new logo and visual identity enhancing our brand impact as part of Euronext Group. Being part of the leading pan-European stock exchange is having a multiplier effect on our expansion and network, as our footprint includes a strong presence in many markets. Our focus will remain on serving you first, our clients and stakeholders, to achieve long-term sustainable growth and value. Our new look is making it easier for everyone to understand that we belong to Euronext Group, and we are delivering together the leading European market infrastructure.

Marta Testi, ELITE CEO