The opening and closing techniques and methods of 50ETF options depend on the investor's trading strategy and market expectations. Options Trading Options Diary SSE 50 ETF Options
Forced liquidation risk, that is, the risk that the customer's margin is insufficient or the illegal position exceeds the limit and is forced to close the position, which is a risk that option sellers need to pay special attention to. Options trading is similar to ** in that maintenance margin is calculated and charged to the option obligor based on the contract settlement price at the end of each day. If there are insufficient funds available in the obligor's margin account, the obligor will be required to make a margin call. If the margin is not made up within the specified time and the position is not closed by itself, the position will be forcibly closed. In addition, when an investor's position exceeds the limit, he may also be forced to close his position if he or she fails to close the position by himself in accordance with the regulations.
The first is the most common, the same as the ** way to close the position, hedge your position to close the position, if you have a long option in your hand now, you can close the position by reselling it to another bullish investor.
The second way to close the position is to choose to implement the option, the American option can be implemented on any day before the expiration date, if you hold a ** long option, and you feel that it is impossible to rise again, you choose to implement the option, delivery **, which is also a way to close the position of the option.
There are generally two types of 50ETF options trading: premium trading and exercise delivery. Premiums Trading Options trading is a premiums trading in the eyes of most investors, which is the most direct way to make profits and losses. For example, when the underlying contract goes in a favorable direction, the premium for the purchase of the contract will follow, and the investor can sell the contract at any time during trading hours to close the position.
1. Don't underestimate the cost of straddle strategy
A long-short strategy is a call and put option with the same underlying, exercise and expiration date at the same time. The long-short strategy is very powerful, making investors think that it is possible to make a profit regardless of the rise or fall of the stock price, and the profit margin is huge, thus underestimating the expensive cost of call and put options. Judging from overseas experience, most options investors who adopt the ** strategy are losing money.
2. Catch the black swan
For buyers of 50 ETF options, the stake is volatility. If the stock price does not move, the buyer loses. Compared with other options such as indices and commodities, ** is likely to be a highly volatile option underlying. When buying options, you should choose ** that may fluctuate unexpectedly, such as high-tech stocks, pharmaceutical stocks under drug review.