For many investors, especially novices, they don't know how to calculate the profit and loss of the investment, but only display their profit and loss according to the system, so how to prevent the risk of 50ETF options trading?Options
For contracts expiring in different months at the same strike price, the longer the expiration time, the higher the ** of the option. As long as the contract does not expire, there is a possibility of various changes, for the option buyer, the time value of the option is slowly losing from the first day of opening, and the closer to the expiration date, the faster the loss. The reduction of the value of time means an intangible loss of the premium. Therefore, options are more suitable for intraday or super** trading, and it is not recommended to carry orders.
The trading volume of the market is the most basic basis for investors to choose, the position is small, the trading is not active contracts, the market bid-ask spread is larger, it is more difficult to reach a transaction, that is, the so-called liquidity risk, the transaction ** for investors also has disadvantages.
1. Liquidation risk: The option seller needs to pay a margin, and when the margin is insufficient, the position will be forced to close by the exchange.
2. The risk of huge losses: As we all know, the option seller has the obligation to meet the buyer's exercise needs, no matter how unfavorable it is to itself.
1. The risk of zero premium. Although there is no possibility of unlimited losses for investors, it is possible for investors to lose all of their premiums when the volatility is more intense.
2. High premium risk: out-of-the-money options may have the risk of being speculated when the expiration date is approaching, but when the first returns to rationality, large losses may occur.
1. Long call option strategy: **Call option contract in anticipation of the underlying asset*** to make a profit.
2. Straddle call option strategy: two call option contracts with different strike prices at the same time to take advantage of the difference caused by the fluctuation of the underlying asset.
3. Long call option strategy: multiple call option contracts at the same time, in order to bet on the underlying asset *** to make a large profit.
1. Long put option strategy: Put option contract in anticipation of the underlying asset*** to make a profit.
2. Straddle put option strategy: two put option contracts with different strike prices at the same time to take advantage of the price difference caused by the fluctuation of the underlying asset.
3. Long put option strategy: multiple put option contracts at the same time to bet on the underlying asset to make a large profit.
1. It is very important to understand the basic concepts, types and trading rules of options. Master terms such as options**, expiration date, strike price, etc., and understand the rights and obligations corresponding to different types of options.
2. Before trading options, it is very important to develop a clear trading strategy. Consider factors such as your risk tolerance, expected returns, and market movements to choose a trading strategy that suits you.
3. Before the actual operation, it is necessary to conduct market and first-class analysis. Understand the trends and possible fluctuations of 50 ETFs by studying relevant information and technical indicators.
First of all, we must understand that the call option, that is, the expiration date of the right party, has the right to exercise, and we know that when the 50ETF option is delivered, it is not cash delivery, but physical delivery.
If the position of the subscriber is much greater than that of the seller of the subscription obligation, then if the subscriber goes to exercise and deliver, the seller must have enough bonds to hand over to the subscriber, then the problem comes, the seller can't take out so many bonds, then it will be a default
Therefore, the SSE cannot exceed 75% of the total circulation of the SSE 50 ETFWe can see the comparison of call and put positions. It's just that the bet is too biased. In fact, to put it bluntly, it is to prevent the risk of a run.
If it helps you, we wish you a happy life!