What are the characteristics of options?
Compared with other traditional stock futures and funds, options have several very big characteristics, which are unique to options.
The first is the unique risk prevention function of options.
Because the original intention of the option itself is a risk management tool, then the risk management tool is characterized by relatively high leverage, especially like all kinds of insurance sold to us by insurance companies. For example, if we buy a car insurance, if the insured amount is 654.38+0 million, then whose premium is cheaper means whose leverage is higher, because it means that investors spend less on hedging risks and may be more suitable for customers.
For options, it provides us with such a way to hedge options. The higher the leverage ratio, the stronger the protection of risk management options. We often say that "futures are spot insurance and options are futures insurance", which also confirms the high leverage of options.
Secondly, options have the function of "small and wide" in the unilateral market.
This is because the leverage of options is particularly high, so if you grasp the market accurately, you will see many people's yields ten times, dozens of times or even hundreds of times in the unilateral market, that is, the role of options is small and wide.
There is also a "precision strike" function.
In the process of trading, some methods and means, if used properly, will maximize the benefits of leverage.
What is rare is that, especially in the current market environment, 50ETF options have the function of "deterring power and increasing income".
Just like our unilateral stock market, if the market falls, it will be difficult to trade. Futures have room for profit regardless of ups and downs, but the band may be more difficult to do when it comes to consolidation. But for options, even in the current consolidation market, in a relatively wide box-shaped finishing space to shock, so that you can use the characteristics of options to earn time value and increase income.
The function of the fifth dimension transaction
In addition to earning spreads like stock futures, options also have a function of earning volatility and time value, which other investment tools do not have.
These five features are actually the five most important functions of options, not just 50ETF.
For retail investors, the main advantages of options
50ETF options are a very fair market.
First of all, the trend of 50ETF options is basically synchronized with the SSE 50 Index, which also determines the contract pricing. Because the circulation of the SSE 50 Index is quite large, no institution or individual can manipulate the SSE 50 Index. Therefore, the trend of 50ETF options is completely spontaneous, and there is no risk that the banker manipulates the market.
Secondly, the scope of 50ETF options is large enough, with a daily turnover of at least one billion and at most six billion, and there are eight largest securities firms in China as their market makers, with sufficient liquidity (except deep and imaginary options).
50ETF options can enjoy low risk and high returns.
Theoretically speaking, the option buyer only has rights but no obligations, so the buyer can only enjoy the leverage income brought by the delivery of the target if he bears the risk of paying the loss of royalties. Therefore, options are inherently leveraged, and small investments have benefits. You can freely choose the lever according to the strength of your own point of view, without opening positions, closing positions and adding margin. Lock in the biggest risk and pursue unlimited profits.
The option itself has a certain leverage, and the 50ETF is 30-50 times that of the broader market, which means that the SSE 50 index rises 1%, and the on-site options can rise by 30% to 50%. This is a very good means of profit for some investors with little money. For example, we invested 65,438+00,000 yuan in the stock market and 50ETF at the same time, and the market rose by 65,438+0%. We may only earn 3%~5% in the stock market, that is, 300~500 yuan, but in the 50ETF, we will generate 30%~50% income because of leverage, and we will get a high return of 3,000 ~ 5,000 yuan.
50ETF options have unlimited returns, but limited risks, so you can use small funds to incite big returns. Does this mean that the risk will be amplified? I can tell you for sure here that I won't. Because the loss of 50ETF is only the money you buy the contract, that is to say, your biggest loss is only the money you are operating now, which is the biggest difference from commodity futures or precious metal trading.
The transaction is flexible, and the "T+0" model allows the income to be cashed immediately.
At present, 50ETF option is the third largest financial investment tool after stocks and futures, and its product advantages are more advantageous to ordinary investors. In terms of product attributes, in addition to two-way trading, there is also the T+0 model, which allows us to open and close positions at any time during trading hours, and profits can be put into our pockets immediately, instead of waiting for the next day like stocks.
We all know that stocks have only one direction, that is, to be long, and A shares cannot be short. Options can be traded in both directions. When the market goes up, you can buy call options to amplify the income. When the market falls, you can buy put options to hedge the risk of stock falling and reduce losses. We can consider from different directions and express our views in a more three-dimensional way, so we call it option three-dimensional trading.
The trading mode of options is T+0, which can bring us more trading freedom. There are more arbitrage opportunities and space. Options fluctuate greatly, and the profit margin is large. Market fluctuation 1%, the average contract fluctuation of options is basically above 30~50 times. The direction of the option is easy to judge. SSE 50ETF closely follows the Shanghai Stock Exchange Index, so as long as we judge the rising and falling trend of the market, we don't need to judge the rising and falling of individual stocks, which has great profit opportunities. The transaction method is simple and flexible, the amount of a single transaction is small, and it can be traded all day, with high liquidity. You don't have to open your position on the same day before the second trading day, as in the stock market. 50ETF options can be bought and sold during trading hours and can be traded in both directions. When the subject matter falls, you can open a position to buy put options.
From the above, the option market is still very friendly to retail investors.
Finally, I remind you that options have an expiration date, usually on Wednesday of the fourth week of each month. If the prices are favorable to you, you must remember to exercise them, otherwise you will not be able to make a profit after the expiration.