50 trading rules for ETF options basis

Mondo Finance Updated on 2024-01-31

1. The trading rules of 50ETF options are as follows: Option 1Trading Hours:

Call auction hours: 9:15 a.m. to 9:30 a.m. on the trading day.

Continuous auction hours: 9:30 a.m. to 11:30 a.m. and 13:00 p.m. to 15:00 p.m. on the trading day.

2.Trading unit:

The trading unit is in "lots", and each 50ETF option contract represents 10,000 50 ETF**.

3.Expiration Date:

ETF options usually expire on the fourth Wednesday of each month, with extensions in the event of a public holiday.

4.Exercise**:

The option exercise ** stipulated in the contract can be divided into in-the-money options, out-of-the-money options and flat-the-money options according to the relationship with the underlying **. The buyer can only make a profit if the option becomes in-the-money, and the seller can only earn the full premium if the option becomes out-of-the-money.

5.Trading Direction:

Call option buyer: Pays the premium and obtains the right to buy ETF options at the agreed ** within the expiration date of the contract.

Call option seller: Receives the premium and assumes the obligation to sell the ETF option in accordance with the contract when the buyer exercises the option on the contract expiration date.

Put option buyer: Pays a premium and obtains the right to sell the ETF option at the agreed ** within the contract expiration date.

The put option seller receives a premium and assumes the obligation to contract the ETF option when the buyer exercises the option on the contract expiration date.

6.Position Limit Regulations:

According to the regulations of the exchange, the position limit of a single investor in terms of rights positions is 20 contracts, the total position limit is 50 contracts, and the single-day** opening limit is 100 contracts. The total position limit of the option operator is 5 million.

For market makers, when the capital is more than 1 billion, the right position limit is 100,000 contracts, the total position limit is 200,000 contracts, and the single-day opening limit is 500,000 contracts. It is important to note that each option contract corresponds to 10,000 "50ETF"** shares, and the contract expires in the current month, the next month and the next two quarter months.

7.Time frame: SSE 50 ETF options are traded on T+0, which also provides prior experience for T+0 trading of A-shares.

8.Price Limit:

The relationship between the rise and fall of SSE 50 ETF options and the rise and fall of SSE 50 ETF is nonlinear. Generally speaking, at-the-money and in-the-money options rise and fall more sharply, while out-of-the-money options have smaller rises and falls, and the limit on the rise and fall of heavily out-of-the-money options is very limited. The specific formula for calculating the rise and fall is as follows:

Options contract daily** limit: the previous settlement price + the change.

Options contract daily ** down limit: the previous settlement price - the change.

In the calculation of price change, call options and put options have different calculation rules.

9.Margin:

50ETF options buyers have no margin, sellers have *** gold.

Margin for opening a call option obligation:

Pre-contract settlement price + max (12% of the previous ** price of the underlying of the contract, the virtual value of the call option, 7% of the previous ** price of the underlying contract) contract unit.

Put Option Obligation Position Opening Margin:

min [pre-contract settlement price + max (12% of the previous ** price of the underlying contract put option out-of-the-money, 7% exercise**) exercise**] contract unit.

Maintenance Margin for Call Option Obligation:

Contract settlement price + max (12% of the ** price of the contract underlying, out-of-the-money call option, 7% of the ** price of the contract underlying) contract unit.

Put Option Obligation Position Maintenance Margin:

min[contract settlement price + max (12% of the underlying ** price put option out-of-the-money, 7% exercise**) exercise**] contract unit.

Options circle collated and released.

2. Basic trading strategy of 50ETF options:

Call:

*Call Option (Call): Expect 50ETF*** to earn a premium.

Sell Call Option (Non-Call): Expect 50ETF*** or stay the same for a premium.

Put put:

*Put (Put): Expect 50 ETF*** to earn a premium.

Sell Put (Bearish): Expect the 50ETF*** or stay the same to receive the premium.

Summary of trading logic:

If you judge that SSE 50 is going to **, you can choose to subscribe (** or sell) or put (sell).

If you judge that SSE 50 is going to **, you can choose to subscribe (sell) or put (** or sell).

3. Notes on the trading characteristics of 50ETF options contracts:

1.*Trend correlation:

Each 50ETF options contract can be viewed as a 50ETF**, and its movement is highly correlated with the 50ETF**.

2.Option Contract ** Formula:

Options Contracts** = Time Value + Intrinsic Value.

Intrinsic Value = 50ETF** Exercise of the contract**.

Time value: The part of the contract** that exceeds the intrinsic value will gradually decay.

3.Option leverage:

Leverage = 50ETF** 50ETF option contract**, the closer to the exercise date, the cheaper the out-of-the-money contract**, and the leverage is more than 1000 times, which is the best time to make a big deal small.

4.Trading unit:

The option contract is shown as one contract and the trading unit is one, 1 = 10,000 shares, with a minimum of 1 contract.

5.Contract Exercise Time:

The fourth Wednesday of each month is the exercise date of the current month, the invalidation value is invalid, and the real value can be exercised or reversed hedging to close the position.

6.Trading Patterns for Options:

The T+0 trading model is adopted, which provides greater trading freedom and greater arbitrage opportunities and space.

7.Volatility of options:

The volatility is large, the profit margin is large, and the average fluctuation of the option contract is basically more than 30 to 50 times.

8.Trading Method:

The options trading method is simple and flexible, and the amount of a single transaction is small.

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