50ETF options can buy up and buy down; Whether to go long or short the market.

So the first thing to consider is the choice of direction.

If you look long, buy call options; If you are bearish, buy a put option.

Second, the choice of month:

50ETF options have four-month contracts, namely, the current month, the next month, the current quarter and the next quarter.

It is suggested to choose the contract of the current month as the investment object. The monthly contract price fluctuates greatly, the cost is lower than that of the far-month contract, and the income is cost-effective

Option Tip: When the contract expires, the price of the virtual contract is more unstable and the time value is lost very quickly. It should be noted that it is suggested to move most virtual value contracts to next month's contracts one week before the exercise date (the exchange rules are usually the fourth Wednesday of the month of the exercise date). Please keep a small part of the income for the month of virtual value contract.

Third, the choice of contract:

It is suggested to choose the price contract closest to the current price of 50ETF options as the investment object, because 50ETF options have their own leverage, with large virtual leverage, small real leverage and moderate horizontal leverage (closest to the current price).

An option is a contract in which both parties buy and sell their rights in the future. As far as individual stock option is concerned, the buyer (obligee) of the option obtains a right by paying a certain fee (royalty) to the seller (obligor), that is, the right to buy or sell an agreed number of specific stocks or ETFs from the option seller at an agreed time and price. Of course, the buyer (obligee) can also choose to give up exercising his rights. If the buyer decides to exercise his rights, the seller is obliged to cooperate.