The meaning of a kill option is a double-kill call and put market. Due to the high implied volatility, the contract does not rise despite looking in the opposite direction.

To be precise, an option can be a kind of right. Options contracts involve at least two parties, a buyer and a seller. When a buyer purchases a contract, he or she enjoys a right but does not assume corresponding obligations.

Just like buying an electronic product on a certain website, the seller needs to bear the warranty obligation of the electronic product. Options are a similar form of trading, except that in options, we buy a contract and then exit the contract if the underlying asset rises during the holding period, thereby earning the profit difference.

The subject matter of an option refers to the asset chosen to be purchased or sold. It includes stocks, government bonds, currencies, stock indexes, commodity futures, etc.

Options are "derivatives" from these underlying assets and are a kind of financial instrument that can be used to hedge risks of other types. However, everyone should note that option sellers do not necessarily own the underlying assets.

For example: if a buyer buys a call option in the options market, a seller in the opposite direction to you will sell a call option and put contract.

Because options can be "short-sold", option buyers may not really want to buy the underlying asset. Options contracts have a holding period. As we said above, from which Just get the profit difference.