Trading options for the first time requires a certain understanding of the options market. This includes understanding the basic concepts of options, exchanges, and trading rules. As with ** trading, you need to open an account with a brokerage company to trade options.
Individuals can choose the account opening platform according to their own conditions, and the sales department needs to meet a certain threshold to open, and the option platform can directly open an account.
If you want to do well in options, you must understand options!
Period: Future; Right: Right
After the premium is paid, the right to execute (**sell) the contract at the agreed time in the future
Call and put options.
Call option - believes that the price will rise in the future, locks in the future ** price (call).
Put option – the belief that the price will be reduced in the future and lock in the future selling price (put).
The earliest listed on-exchange option in China is the SSE 50 ETF option, which is based on the SSE 50 ETF and tracks the SSE 50 Index. Investors can buy and sell 50 ETF options based on the rise and fall of the SSE 50 Index**.
Option sauce collated and released.
A basic introduction to 50 ETF options
The 50 ETF is an exchange-traded ETF with a portfolio that fully covers the 50 constituents of the SSE 50 Index, so buying a 50 ETF is equivalent to having all 50 ETFs at the same time. 50ETF options are derivatives that trade on the rise and fall of 50ETF. Depending on the future trend, investors can choose 50 ETF options to reap the benefits.
Analysis of option elements
1.Exercise date (expiration date).: The exercise date of 50 ETF options is the fourth Wednesday of each month, which is the expiration date of the option and the last day of the option contract.
2.Option units: A 50 ETF options contract contains 10,000 shares of 50 ETF**, which is the basic unit of options trading and the basis for determining the trade size.
3.Exercise PeriodThe exercise period of 50 ETF options can be selected as the current month, next month, next quarter month or next quarter month, and investors can choose the appropriate exercise period according to their trading strategy.
4.In-the-money, at-the-money, and out-of-the-money options: An in-the-money option is a market** with an exercise ** below (for call options) or higher than (for put options) 50 ETF**; An at-the-money option is a market with an exercise equal to 50 ETF**; Out-of-the-money options are markets where the exercise ** is higher (for call options) or lower than (for put options) 50 ETFs**.
5.Premiums: The premium for a 50 ETF option is made up of intrinsic value and time value. Intrinsic value refers to the value that can be obtained if the option is exercised immediately, while time value refers to the part of value other than intrinsic value. Time value gradually decreases as the remaining time of the option contract decreases, so the option holder needs to weigh the relationship between intrinsic value and time value before the option expires.
Conclusion
Through the above analysis of the trading elements and options points of 50ETF options, we can have a more comprehensive understanding of the characteristics and trading rules of this financial derivative.
When trading 50ETF options, investors need to fully consider factors such as market trends, option expiration dates, and the real, at-the-money and out-of-the-money status of options, so as to formulate appropriate trading strategies, reduce investment risks, and maximize investment returns. Zero threshold for options