Snowball Financial Product Strategy Expansion

OTC derivative structured products have the characteristics of flexible structure,diversified and customized contract elements.The transaction scale is constantly increasing,and they have gradually become a popular tool and the main trading object in the investment and financial management market.In the asset management market of securities firms,the OTC products constructed by snowball strategy are developing rapidly,with the characteristics of high expected return,wide safety cushion and limited loss range,and are favored by many asset management institutions and investors.The core content of this paper is the research and expansion of snowball option product strategy,and the "win rate" of traditional snowball strategies and extended Snowball strategies.In this paper,a typical snowball configuration product series is taken as an example to analyze the positioning,target customers and product strategies of the existing traditional snowball configuration products.Behavioral finance theory and option strategy theory are used to analyze the products,and it is found that the traditional snowball option product has a single strategy and limited scope of application.The product differentiation strategy of reverse snowball and the product combination strategy of locked snowball are put forward in order to enrich the applicability of snowball products and expand the application scenarios of snowball configuration products.By fitting 3403 effective samples of product data,the winning rate of expansion strategy under different market backgrounds was obtained,and the winning rate was compared to verify the feasibility of strategy expansion.The profit and loss mode of this kind of products is in sharp contrast with traditional financial products,and it has comparative advantages.Traditional snowball configuration products perform well under low interest rate and weak market,with outstanding win rate and return.The characteristics of the products conform to the behavioral finance theory and comply with investors’ general decision preferences,but investors still cannot ignore the inherent risks and application limitations of snowball options..Therefore,in the end,this paper puts forward constructive suggestions for the three parties related to the product.