If the Shanghai Index has been in the first market, each low point gradually rises, and before the breakthrough, it should be operated mainly in the range of ideas, and the position needs to be cautious, always pay attention to the profit and stop loss.
When performing swing operations, it is necessary to consider the relationship between volatility and the underfoot, i.e., whether they are negatively or positively correlated. In general, the volatility of the underlying and the volatility of the underlying are the volatility of the underfoot.
Option sauce collated and released.
If the volatility is negatively correlated with the underlying **, then you can choose to sell the put contract when you are long during the day, and it is more beneficial for the buyer to go short during the day, and you can directly put the contract.
For investors who only participate in the buy-side, it is recommended to choose the in-the-money call contract when going long. The time value of a real contract is small, and the vast majority of the value depends on the intrinsic value of the change in direction. In the case of the correct market direction, the increase in intrinsic value can offset the loss of time value, so the ** reaction is more obvious.
Choosing a cheaper out-of-the-money contract can be affected by volatility**, resulting in excessive loss of time value and unresponsiveness, unless the market is volatile or persistent.
When going short, it is recommended to choose a put contract near at-the-money. At this point, volatility is supported, and you don't have to worry too much about the adverse effects of time value, as long as it's in the right direction. However, special attention needs to be paid to take profit, because once the market direction reverses, these contracts will be the fastest.
In general, for buyers, money flows quickly in the options market, and the phenomenon of "come and go faster" is mainly due to the fact that most investors tend to buy cheaper contracts with the highest time value. Therefore, we need to do a good job in risk control, keep up with the law of option changes, and reasonably set the take-profit and stop-loss, so as to have a better layout in the next transaction. Options