As a financial derivative, options have a wealth of strategies and options trading rules. Understanding the trading rules of options is a must-have for every options trader. This article will provide a detailed analysis of the trading rules and systems of options to help readers better understand and apply the trading strategies of options.
1. Options trading rules: The trading rules of options mainly include the following aspects:
1.Buyer and seller: Options trading involves two parties, the buyer is the purchaser of the option rights, and the seller is the bearer of the option obligations.
2.Elements of an option contract: An option contract usually includes the underlying asset of the contract (e.g., **, commodity**, etc.), the expiration date of the contract, the exercise** and the delivery method (physical delivery or cash delivery).
3.Trading market: Options trading is usually carried out on exchanges, such as the Chicago Board Options Exchange (CBOE), Hong Kong Stock Exchange, etc.
4.Trading Hours: Options trading is typically conducted from 9:30 a.m. to 4:00 p.m. every trading day, excluding holidays.
5.Exercise and Delivery: On the expiration date, the buyer can choose to exercise (i.e., exercise the option) or waive the option. If the buyer chooses to exercise the option, the seller must fulfill the obligation. Options can be delivered either physically or cash, depending on the contract.
6.Options operation methods: Fundamental analysis, technical analysis, volatility analysis and other methods can be used for option operations.
7.Risk management: Options trading has certain risks, and investors should take appropriate risk management measures.
2. Detailed explanation of the trading rules and system of options
1.The direction of the trade.
Options trading is divided into buyers and sellers, for option buyers, options are an investment method with limited risks and unlimited theoretical returns; For option sellers, options are an investment method with limited returns and unlimited theoretical risks.
Buyers and sellers of call options and buyers and sellers of put options.
Call option buyer: Pays the premium, (buyer call trade).
Call option seller: Collect the premium, (seller put trade).
Put option buyer: pays the premium, (buy put trade).
Put Seller: Collect the premium, (Seller Call Trade).
2.Expiration month.
Each quarter shows four months of contract.
3.Options Interpretation:
For example, if the current month is August, the expiration months are August, September, December, and March of the following year.
This paper summarizes the analysis of the rules and regulations of options trading, and emphasizes the importance of understanding and mastering these rules for successful options trading. At the same time, looking forward to the future development of the options market, it provides some suggestions and enlightenment for readers.
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