An equity structured product (and a reverse convertible) that provides participation leverage with no guarantees as to potential downside risk. However, the reverse convertible has an embedded put option that in principle protects the issuer (holder of the option) against falling prices of underlying stock. Leverage will probably increase the fixed coupon payable to the holder. It can be done by selling a number of put options with different strike prices. The coupon will be enhanced by the total amount of put option premiums. But if the underlying undergoes high level of impairment (price depreciation), the capital (principal amount of the convertible) will also suffer huge losses due to the effect of leverage.

It is also known as a geared reverse convertible.