Futures, in a nutshell, is an order contract. Futures trading means that both parties agree to trade in the future now. Option is a kind of option, which refers to the right to buy or sell a certain quantity of a certain commodity at a certain price at a certain time in the future. Among the options, there are call options and put options. Today, let's talk about put options, which is put options. Why do put options lose more and earn more? What is the trading strategy?

Source Baidu: Caishun Option

Why do put options lose more and earn more?

Put strategy is a trading strategy used when the expected price of the subject matter falls. It mainly includes four strategies: buy put option, sell call option, bear market put option spread and bear market call option spread. To put it simply, the put option method means that we think that the market outlook will fall, so the research assumes that when buying put options, the market outlook will really fall, and we can get economic benefits.

For example, if investors think that 50ETF options will fall to 3.2 yuan in May, they can buy "50 ETF may sell 3200 contracts". If the future contract price level is lower than that of 3.2 yuan, it will be profitable. For traders, buying a put option is actually equivalent to establishing a minimum selling price, which can lock in the risk and ensure that traders can get the benefits brought by the price increase.

What are the trading strategies of put options?

Buying a put option is the opposite of buying a call option, which means that the price of the product will drop sharply in the future, and the right to sell a contract at a specific price in the future is obtained by paying royalties. The first bearish strategy that most online traders learn is how to short stocks online. If the stock price falls below your short selling price, it is profitable. When buying a put option contract, if the underlying market falls, the value of the option contract will be higher, so investors can make a profit.