Up to 5 times, which is a gain of nearly 500%

On February 22, 2021, the February put option increased by up to more than 7 times

Options The trading characteristics make options the best hedging tool in the financial market, better than futures.

Trading rules for 50ETF options

In T+0 trading, you can buy or sell at any time on the same day, or hold the position overnight, without any additional handling fees.

You can buy long and short in two-way transactions. (Buy call options, buy put options)

There is no limit on the rise or fall of the buyer. The highest increase in history on that day is 19,200%, and the maximum profit on the day of 100,000 is 19 million.

The trading hours are the same as stocks, and trading can be done within 4 hours of the trading day.

Extended information:

1. An option refers to a contract, which originated from the American and European markets in the late eighteenth century. The right to buy or sell an asset at a fixed price at any time before that date. The key points in the definition of options are as follows:

1. An option is a right. Options contracts involve at least two parties: a buyer and a seller. The holder enjoys rights but does not assume corresponding obligations.

2. The subject matter of the option. The underlying of an option is the asset chosen to be purchased or sold. It includes stocks, government bonds, currencies, stock indexes, commodity futures, and more. Options are "derivatives" of these underlying assets, so they are called derivative financial instruments.

3. Expiration date. The day on which the option expires as agreed upon by both parties is called the "expiration date". If the option can only be executed on the expiration date, it is called a European option; if the option can be executed on the expiration date and at any time before, then Called American options.

4. Execution of options. The act of buying or selling the underlying asset based on an options contract is called "execution." The fixed price agreed in the option contract at which the option holder purchases or sells the underlying asset is called the "strike price".

Second, price

When there is an option sale, there will be an option price. The price of the option is usually called "premium" or "option premium". The premium is the only variable in the option contract. Other elements in the option contract, such as: execution price, contract expiration date, transaction type, transaction amount, transaction time, transaction location, etc., are all stipulated in advance in the contract. It is standardized, and the price of options is determined by traders bidding on the exchange. The option price is mainly composed of two parts: intrinsic value and time value:

1. Intrinsic value

Intrinsic value refers to the total profit that can be obtained when the contract is fulfilled immediately. It can be divided into real-value options, out-of-the-money options and even-money options.

(1) Real-valued options. When the exercise price of a call option is lower than the actual price at that time, or when the execution price of a put option is higher than the actual price at that time, the option is a real-valued option.

(2) Out-of-the-money options. When the exercise price of a call option is higher than the actual price at that time, or when the execution price of a put option is lower than the actual price at that time, the option is an out-of-the-money option. When an option is out-of-the-money, the intrinsic value is less than zero.