Individual stock options are legal and are supported and promoted by the state.
According to the "Stock Options Trading Pilot Management Measures" issued by the China Securities Regulatory Commission, securities companies and futures companies can engage in stock options brokerage business in accordance with the law.
However, investors should be careful when choosing individual stock options. There are criminal elements entering the OTC individual stock options market. They cannot meet the requirements of securities companies, but they deceive investors under the guise of cooperating with securities companies. Therefore, when choosing a securities firm, you must ensure the qualifications of the platform and institution, and be careful not to be deceived.
Extended information:
Individual stock options can be mainly divided into two categories: call and put. As long as you buy an option, whether it is a call or a put, you have only the right but no obligation. That is, you can buy at the agreed price or sell at the agreed price when it expires. However, this is the buyer's free choice, but the party selling the option does not matter whether it is bullish or bearish. All terms must be fulfilled unconditionally.
Therefore, the risk of the option buyer is limited (the maximum loss is the premium), but the theoretical profit is unlimited; at the same time, the option seller (whether call or put option) has only obligations but no rights, and the theoretical risk Unlimited, limited income (the maximum income is the premium). Overall, individual stock options are not suitable for all individual investors and are more suitable for institutions to hedge risks or perform arbitrage.
Baidu Encyclopedia-Individual Stock Options