1.50 which is more risky, ETF options or futures?
First of all, it must be said that in fact, futures and 50ETF options are relatively risky, because they both belong to their own leveraged investment tools. If we insist on comparison, I personally think that commodity futures are more risky for two reasons.
First of all, the wrong direction of commodity futures may require additional margin. When the proportion of futures errors is high, it will break out without margin. The biggest loss of 50ETF option buyers is the loss of royalties, while the seller's margin system is nonlinear, which actually protects the seller, so that when the option changes from imaginary value to flat value, they will face greater pressure of additional margin, so as to avoid boiling frogs in warm water and taking too much risks. Moreover, the option buyer's position limit system can, first of all, let the buyer not build a large position at once and passively manage the funds. Even if he makes a lot of profits at one time, it is impossible to continue to buy options with all the profits. He can only buy 30% of the account funds at most to keep most of the profits.
The perfect combination of these two systems is a good application of the current option rules.
If we are buyers, we can say that futures have unlimited risks and unlimited returns; Option risk is limited, return is infinite, of course, futures risk is greater.
Secondly, the accuracy of commodity futures analysis is much lower than that of 50ETF options. Because commodity futures have a lot of speculative funds, daily intraday trading is very frequent, and the technical trend is complex, which is difficult to analyze. 50ETF options mainly follow 50ETF. 50ETF has no speculative funds for intraday trading, and the time-sharing trend is relatively stable and easy to analyze.
Crucially, 50ETF involves 50 large-cap stocks, so the possibility of being manipulated by hot money is very low, and it is relatively easy to analyze according to fundamentals and technology.
Of course, commodity futures now have options, including soybean meal options and sugar options. These two options follow the corresponding commodity futures, which is more difficult to analyze than futures, but there is no requirement for additional margin. Therefore, the risk of commodity options is slightly lower than that of futures and slightly higher than that of 50ETF options.
However, in the trading of 50ETF options, the risks and benefits of investors are asymmetric.
The risks undertaken by the option buyer are limited (the risk of losing royalties), the profits may be unlimited, while the benefits enjoyed by the option seller are limited (limited by the royalties obtained), and the potential risks may be unlimited (once again, individual investors are not recommended to be sellers).
The biggest loss of 50ETF options is the loss of royalties. Both sides of futures trading are faced with unlimited profits and endless losses. In futures trading, there is a risk that it is easy to explode positions, be forced to close positions, and need to add margin!
Second, how to avoid option risk?
Simply put, if you hold a long position, but you are worried about falling, you can buy put options to prevent losses caused by a sudden sharp decline. The result is three situations:
The market continues to rise, and the put option in hand-automatically becomes invalid. Royalties are lost, but long positions are profitable.
When the market turns down, the put option in hand-execute, get the option income, make up the position or make a profit appropriately.
The market continues to consolidate, waiting for the situation to be clear and reducing emotional pressure. This is the basic situation, and bears are just the opposite.