What does the stock cash option mean?

The meaning of cash option means that after the transaction process is over, the party who needs to pay the transaction object can choose to actually pay the transaction object in cash or perform delivery procedures. It is also called "cash delivery" in commodity futures industry. There is a similar operation in the securities market. This method of allowing cash payment instead of physical payment is called cash option.

1. In the market, the party who needs to pay the subject matter of the transaction will choose the subject matter at the right time or use cash after the transaction. In commodity futures, it is also called cash delivery. There are also related operations in the securities market that allow cash to be used for payment, which is called cash option. The final settlement price used for cash delivery is the spot index or maturity date of the next day, and the delivery does not need a basket of stock index components. The final settlement price calculates the profit and loss. Many foreign exchanges also use this method, but China's commodity futures market does not allow cash delivery.

Is this good? We can take a look at an example: for example, insiders will be merged before 600832, which means that cash options will appear at the end of stock trading, which are generally delicious. Judging from the overall listing situation, the stock price will show an upward trend in the afternoon. It is also necessary to analyze the historical performance of this stock. The influence of cash option on stock price;

Before the exercise, the cash option is equivalent to a strong support level. With this position, the stock price will not fall below this price, and it will fall before long. But after the exercise period, the price will play a psychological role. If it is a bull market, then the stock price will be higher than the exercise price.

Second, how to declare?

1. Shanghai Stock Exchange

1) Organize shareholder declaration: mainly based on the announcement of specific cash options of listed companies.

2) Shanghai Stock Exchange system declaration:

A. Counter entrustment: I take my ID card to the sales department;

B. Telephone entrustment: "33 sell", "1 entrust"-"1/buy"

C. online entrustment: exercising other transactions; Buying and selling menu;

D. Mobile phone entrustment: menu operation, with 100 copies as the unit.

2. Shenzhen market

1) Manual declaration: mainly based on specific announcements.

2) Declare through the trading system of Shenzhen Stock Exchange:

A. Counter entrustment: I take my ID card to the sales department;