Option has a characteristic: option gives the holder rights and does not require the holder to undertake obligations. Therefore, the option buyer only has the rights granted by option contracts, and does not have to bear the obligations. On the contrary, the option seller must assume obligations without corresponding rights.
The simple understanding is that the buyer can judge the rise and fall of the index market by buying and selling the index option contract, and make long or short to obtain the profit difference. Because the option itself is a time-limited trading contract, the buyer, as the right party, can choose to exercise the right to deliver the goods on the expiration date after signing the purchase contract with the seller's obligation party. When the buyer applies for delivery, the seller must fulfill the buyer's exercise conditions, and the buyer can also close the position directly before the expiration to obtain profit margins.
The biggest risk for the buyer is to pay the contract cost. If you make a mistake, you may lose all your royalties.
The biggest risk of the seller is unlimited, and the income is the royalties paid by the source buyer.
The earliest listed option in China is the SSE 50ETF option that tracks the SSE 50 index.
SSE 50 Index, compiled by Shanghai Stock Exchange, is the most representative sample stock among the 50 stocks in Shanghai Stock Exchange, reflecting the overall market situation. The index is referred to as SSE 50 for short, with the code of 0000 16 and the benchmark date of 65438+February 3, 20031.
The 50 constituent stocks of the Shanghai Stock Exchange include