Individual stock option is a single stock and the delivery method is physical delivery. Stock index options are delivered in cash, and both parties of real value options are delivered in cash. At the same time, stock index options are indexes and cannot be traded directly.
Individual stock option refers to a standardized contract that is uniformly formulated in the exchange and stipulates that the buyer of the contract has the right to buy or sell the agreed underlying securities at a specific price at a certain time in the future. Stock option is produced on the basis of stock index futures. In order to obtain the right to buy or sell a certain subject matter based on stock index at some future time, the option buyer pays the option fee to the option seller.
The leverage of stock index options can help users grasp the trend of trading with limited capital cost. When market uncertainty increases, they can protect their positions by buying stock index put options.
Option is a kind of right to buy or sell a certain number of specific objects at a specific price in the future, in which stock index option refers to an option contract with stock index as the exercise variety. Investors can rationally choose option contracts with different targets according to their own needs.