Options profit from the price difference by judging the rise and fall of the market. Options are divided into two trading directions: call options and put options. There are four ways to open positions: the buyer can buy call options and put options, the seller can sell put options and sell put options, and the buyer and seller are counterparties. As long as one side judges correctly, there is a chance to make a profit.

The principle of option profit is simple:

When predicting the future market rise, you can choose to buy call options (call options);

If you predict that the market will fall, you can choose to buy put options.

Assuming that the market is flat that day, Xiao Ming judges that the market will fall today. Xiaoming bought 50ETF and sold the May 2550 contract at the early opening, and the cost price of patent fees was 848 yuan.

At the close, the 50ETF fell by -0.59%. At this time, the put contract bought by Xiao Ming has appreciated to 1059 yuan.

Xiao mingcan closed his position and made a profit, and sold it directly before the close of the day, with a profit of1059-848 = 211yuan.

Or choose to exercise on the fourth Wednesday of the month of the exercise date. Assuming that the exercise price of Xiao Ming's put contract on the exercise date is 2.550 and the current price of 50ETF is 2.5 16, then the put contract of 2.550 is the real value and can be delivered by exercise. At this time, as an option buyer, we have the right to sell the 50ETF fund with the current market value of 2.5 16 yuan at the price of 2.550 yuan, and the income is 2.550-2.5 16=0.034 yuan * 10000 shares =340 yuan.

In short, not only bullish, options can also be short, even if there is no spot in the holding, you can buy put options as a hedge.