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Equity outlook: The high cost of global fragmentation for US portfolios
Charu Chanana
Chief Investment Strategist
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Already own Logitech - or want to? There’s a smarter way to invest either way.
Koen Hoorelbeke
Investment and Options Strategist
Note: This is marketing material.
Already own Logitech - or want to? There’s a smarter way to invest either way.
A practical guide to using conservative options strategies with Logitech as a real-world example.
If you're a long-term investor holding Logitech shares—or you're thinking about buying some—this may be a useful moment to explore two simple ways to generate extra income or buy shares at a discount: covered calls and cash-secured puts.
These are two of the most beginner-friendly strategies in the options world. They work best when the stock you’re interested in is relatively stable, which is exactly the case with Logitech right now. Since its earnings release in April, Logitech’s share price has moved sideways, with no major surprises on the horizon. That makes it a practical example for showing how options can support your investment goals—even if you’ve never used them before.
This article walks through:
- How covered calls and cash-secured puts work
- When you might choose one over the other
- The difference between Logitech’s Swiss-listed and U.S.-listed options
- What to look for in the option chain
Let’s begin with the two core strategies.
Strategy 1: Selling a covered call on Logitech’s Swiss shares (LOGN)
What it is
If you already own at least 100 shares of Logitech on the Swiss exchange, you can sell a call option on those shares. In doing so, you agree to sell them at a certain price (the strike price) if Logitech’s share price rises above that level before the option expires.
In return, you receive a premium today—cash paid into your account. If the share price stays below the strike, you keep both the premium and your shares. If the price rises above the strike, you may have to sell your shares at that price.
Example
Logitech is trading around CHF 70. You sell the July 2025 call with a CHF 76 strike and receive CHF 0.72 in premium.
- This provides roughly 1% income for 31 days
- You still benefit from up to 8% upside in the share price before assignment
Things to consider
- The Swiss options on Eurex often show wide bid/ask spreads
- Open interest is low, so orders may take longer to fill—always use limit orders
- This strategy is best suited for investors who plan to hold their shares long-term but want to earn some extra income while doing so
Strategy 2: Selling a cash-secured put on the U.S.-listed Logitech (LOGI)
What it is
If you don’t own shares yet but wouldn’t mind buying them at a lower price, you can sell a put option. This means you’re agreeing to buy the shares at a certain price if Logitech falls below that level by expiry. In exchange, you receive a premium now. This is known as a cash-secured put because you keep enough cash set aside in your account to buy the shares if needed.
Example
Logitech is trading around $87. You sell the July 2025 $82.50 put and receive $1.25 per share ($125 total).
- If the share price stays above $82.50, the option expires worthless and you keep the premium
- If the share price drops below $82.50, you buy the shares—at an effective cost of $81.25
Why use this?
- You get paid to wait for a better price
- The premium provides a small buffer against a drop in price
- It’s ideal for patient investors who like the stock but don’t want to chase the current price
LOGI vs. LOGN: understanding the two listings
Logitech is a dual-listed company. That means the stock trades in:
- CHF as LOGN on the Swiss exchange
- USD as LOGI on the U.S. Nasdaq exchange
Each version has its own option contracts.
| Swiss listing (LOGN) | U.S. listing (LOGI) | |
|---|---|---|
| Currency | CHF | USD |
| Option exchange | Eurex | Nasdaq (OCC) |
| Bid/Ask spreads | Wider | Tighter |
| Open interest | Low | Higher |
| Best suited for... | Investors who already own the Swiss shares | Investors starting from cash and want liquidity |
In short:
- If you already own Swiss shares → use Eurex (LOGN) options for covered calls
- If you want to potentially buy shares → use U.S. LOGI options for cash-secured puts
Summary table
| Strategy | When to use it | Example | Premium | What if share stays flat? | What if share rises? | What if share falls? |
|---|---|---|---|---|---|---|
| Covered Call (LOGN) | You own 100 Swiss shares | Sell CHF 76 Call | CHF 0.72 | Keep shares + premium | Shares may be called away | Keep shares, absorb loss minus premium |
| Cash-Secured Put (LOGI) | You want to buy shares cheaper | Sell $82.50 Put | $1.25 | Keep premium, no shares bought | Keep premium | Buy shares at $82.50 (breakeven: $81.25) |
Frequently asked questions
Can I trade U.S. options from Switzerland?
Yes, if your Saxo account is set up for U.S. markets, you can trade listed options on LOGI.
Will I lose my shares with a covered call?
Only if Logitech rises above your strike price. Then you’ll sell your shares at that level—but you still keep the premium and any gains up to that price.
Is there a risk of assignment early?
Yes, especially if Logitech is trading above the strike just before the ex-dividend date. This is common with deep in-the-money calls.
What if I change my mind?
You can always close your option position before expiry by buying it back.
Final thoughts
This is not about speculation. It’s about using simple, conservative strategies to generate income or reduce entry costs—while staying aligned with your long-term investing approach.
Logitech gives us a clear, real-world example:
- It’s dual-listed, making the comparison between exchanges practical
- Its sideways price action and liquidity setup offer good teaching value
- The trade-offs between premium income, purchase price, and risk are easy to grasp
Start small, take your time, and use these kinds of situations to build comfort with options as a useful tool—not a gamble.
All examples are for educational purposes only and do not constitute investment advice.
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