The option delivery date is the delivery date of the buyer and the seller, and the option delivery date in China is also the exercise date, that is, the fourth Wednesday of each month.

The contract of 50ETF options has an expiration date, and the day after the expiration date is the delivery date or exercise date. At the close of the exercise date, all hypothetical contracts will be zero, and the real contracts held by the buyer will generally choose to exercise.

If the buyer who subscribes for the option chooses to exercise, the buyer only needs to pay the exercise price to get the coupon;

If the buyer exercises the put option, he will pay the funds at the exercise price.

Therefore, in 50ETF option trading, the buyer is the right party, that is, the party exercising the right, and can choose to exercise or give up the exercise of closing the position due; The seller is the debtor. If the buyer chooses to exercise the option, the seller is appointed to exercise it and the seller can only accept it unconditionally.

When investing in options, most investors generally don't choose delivery (exercise), and most of them will sell their option contracts before the delivery date, because exercising is very troublesome, complicated and risky.

Image source: Option sauce

Second, the difference between physical delivery and cash delivery, the highlight is in the above picture, you know!

Delivery system is one of the key systems in option product design. It is of great significance to understand the product contract and system design of stock index options in China to correctly understand the delivery situation of options and fully understand the delivery characteristics of overseas stock index options market. According to overseas experience, before the expiration of stock index options, the positions in the market did not decrease. A large number of market participants have the demand to hold expired options, which makes the option delivery system particularly important to investors.

There are two delivery methods to choose from: cash delivery and physical delivery.

The so-called cash delivery refers to the option contract that has not yet expired, and the contract is completed by cash payment, and the settlement price is used to calculate the delivery profit and loss. Considering the need to protect the rights and interests of investors and promote the rational operation of the market, overseas markets generally adopt the system that exchanges automatically exercise power on behalf of customers.

The so-called physical delivery means that the option seller delivers the subject matter to the option buyer at the exercise price or accepts the subject matter at the exercise price, and completes the contract by delivering the actual subject matter. Stock index options in overseas markets are generally delivered in cash.