How do you look at the underlying option**? In fact, if you want to trade options, you must first learn how to look at the target! Because the option target is the key to options trading, in this article, let's learn how to look at the option target! Option underlyingThe above material ** in: Caishun Options
1. What is the underlying of the option? The subject matter of the option can be a variety of financial assets, that is to say, the subject of the option refers to the subject matter of the purchase and sale agreed in the option contract, which can be **, stock index, commodity**, foreign exchange, etc., for example, the subject matter of SSE 50 ETF options refers to ChinaAMC SSE 50 ETF, and the subject matter of ChiNext ETF options refers to E Fund ETF.
In options trading, the buyer has the right (but not the obligation) to sell the underlying at a specific time in the future, and the seller has the obligation to sell the underlying at the buyer's request.
2. What is the underlying ** of the option?
Option**, or premium, refers to the amount paid by the buyer to the seller for the purchase of the option when the buyer and seller of the option enter into an option transaction. Options** are usually concluded by auction between the two parties to an option transaction on an exchange. What is the composition of options**? In fact, the premium of an option is not a separate existence, but consists of two parts: intrinsic value and time value.
1.Intrinsic value: Intrinsic value is the actual return when the option is exercised, i.e., the difference between the current and exercised of the underlying asset.
2.Time Value: Time value is the premium portion of an option and reflects the probability that the option may move in the future.
3. What do you think about the underlying ** of the option?
Taking 50ETF options as an example, the ** table of 50ETF options is also known as the T-shaped chart of options, and the middle of the option T type is the exercise time of ** option contract and the selection of contract strike price. The two sides in the middle of the T type are the latest price, which is the premium of each option contract**, and the latest price multiplied by 10,000 is the premium of the contract**, for example, when you choose to subscribe to the strike price of 28500 contract, the last price is 00547, so the premium of the contract** is 547 yuan.
Fourth, options trading must know the points
In trading, it is quite a challenging task for beginners to accurately ** market movements, and it is advisable to close positions in a timely manner as soon as doubts arise about market movements.
When investors start to lose confidence in the market, they should close their positions decisively and determine their own buying and selling**, unless the market trend can be clarified, because hesitation to place an order often leads to losses.
Finally, the above views are for reference only, not as a basis for trading, and profits and losses are at your own risk. The market is risky, and investors need to be cautious.