Every day, the target of individual investors' inquiry in institutions is different, and they need to repeat the inquiry every day. The inquiry can be started in one month, and the quotation amount of different brokers is different.
A case study of investing in OTC stock options
Xiaoming is optimistic about the market performance of China Ping An (60 13 18) in the next three months, and plans to build a large position in the stock with a market value of100000 yuan. Because he can't directly participate in OTC options of individual stocks at present, he chose to make an inquiry through the brokerage channel of qualified institutional investors, and learned that the cost of China Ping An's three-month liquidation option is 5%.
Xiaoming only needs to pay an option fee of 500,000 yuan (6.5438+million yuan *5%) to get the nominal market value of China Ping An of 6.5438+million yuan.
1. Share price rose by 20%:
Two months later, the share price of China Ping An rose by 20%. Xiao Ming thinks that the stock price has become ideal and chooses to instruct qualified institutional investors to close the option contract.
At this time, Xiao Ming got a profit of 2 million yuan (6,543.8+0.1 million yuan *20%) and a net income of 6,543.8+0.5 million yuan (2 million yuan minus the option fee of 0.5 million yuan). It shows that the leverage net profit is 3 times (6.5438+0.5 million yuan/500,000 yuan).
If Xiaoming chooses to invest 500,000 yuan himself, he can only get a profit of 6,543,800 yuan (500,000 yuan *20%).
2. The stock price fell by 20%:
Three months later, China Ping An's share price fell by 20%. Through OTC stock options, Xiaoming's net income is 0 yuan (he can choose not to choose options), and the cost is option fee-500,000 yuan.
If Xiaoming chooses to invest all his capital of 6,543,800 yuan, the loss will be 2 million yuan (6,543,800 yuan *(20%)).
This case highlights the leverage advantage of OTC stock options, which enables investors to gain more benefits in the market and control risks more flexibly.
OTC Stock Option Participation Process:
The first step is the inquiry stage.
Submit the purchase demand of specific stock options and wait for the securities firm to provide the option fee quotation. Inquiry contents include but are not limited to trading time, trading target, trading direction, trading price and trading volume.
The second step is the investment stage.
Once the inquiry is successful, the broker will quote the option fee for specific stocks and terms. Investors need to transfer the corresponding option fee to the designated account.
The third step is to buy the trading stage.
Investors can issue buying orders through market price, limit price or interval price. The broker will reply whether the transaction is completed within 1 day. If the transaction is not completed, the option fee will be returned to the account.
The fourth step is to sell the exercise stage.
Investors can issue trading orders to sell the exercise right through market price, limit price or interval price. After the sale, the broker will inform whether the exercise has been successfully achieved.
Note that each broker's exercise date is different, and some are t+ 1, which is based on t+5. You need to ask clearly before making a decision.
The fifth step is the settlement stage.
According to the clearing information of buying and selling, the broker settles the purchased option contract. The profit will arrive after T+3.
It takes some time to place an order for OTC stock options, unlike online trading, so the trading mode of OTC stock options is still relatively primitive.
Which investors are suitable for OTC options?
1. Low-level covering investors: These investors have invested a lot of money in some specific stocks, and their stock prices have fallen to a low level. They firmly hold these stocks and believe that there is a chance to rebound near key support levels. I hope to seize this rebound to balance the cost of using funds, but I am worried about market risks. In this case, using the finite risk and leverage characteristics of options, we can increase the income by buying call options.
2. News analysts: This kind of investors can know in advance the major good news of listed companies such as mergers and acquisitions, capital increase and share expansion, and financial reports when they are exposed to news information. They may also follow the national industrial policies, plans and supporting documents, and have a certain ability to predict the rotation of hot plates. The interest-free nature and high leverage of options allow them to get big returns with small funds.
3. Hedging strategy users: Investors may have customers who are engaged in securities lending business. They are worried about the possible uncertain rebound space of a stock price, but they are not willing to give up bearish completely. In this case, they can buy the call option of the stock to pay the premium to hedge the risk. The nonlinear characteristics of risk and return of options enable investors to lock in risks in advance, and the return potential can be unlimited during the contract period.
4. dark horse shares Tracker: This kind of investors may have a special trading system and trading rules, which can accurately capture the signs of individual stocks before they break out. They are familiar with the capital flow, trading volume, technical form, and the signs before the stock is about to skyrocket. The leverage of options and finite risk enable them to better realize their trading strategies.
5. Long-term investors: These investors judge the long-term performance of stocks through in-depth analysis. They may think that a stock is about to rebound sharply, but because of the cost of capital, they are unwilling to invest a lot of cash to wait. In this case, buying a call option with a reasonable term can effectively invest at a specific time and price level.