To buy and sell options, we must first understand that options have four trading directions, namely, buy bullish, sell bullish, buy bearish and sell bearish. As long as we understand the ups and downs of options, distinguish between real and virtual options, understand the various T quotes of options, and check the changes of a contract premium, we can start trading.

The first step is to distinguish between call and put options.

50ETF option contracts are divided into call options and put options. Call option means that the option buyer has the right to buy the option contract at the agreed time and price; The buyer of put option has the right to sell option contracts at the agreed time and price. In the T-shaped quotation chart, the exercise price is the central axis. All subscription contracts on the left are call options, and all put contracts on the right are put options.

Step 2: Distinguish between real and imaginary options.

Based on the settlement price of 50ETF in the previous trading day, the exchange hangs a certain number of real options and imaginary options up and down according to a certain exercise price range. In the T-shaped quotation chart, the market price of the underlying 50ETF is taken as the central axis. In the list of call options on the left: the upper part is real options and the lower part is virtual options. In the list of put options on the right: the upper part is imaginary option, and the lower part is real option.

The third step is to understand the various quotations of options.

Option price (value) = time value+intrinsic value

Intrinsic value refers to the income obtained by the buyer immediately exercising his rights without considering the handling fee and royalties. Intrinsic value of call option =50ETF market price-exercise price. Intrinsic value of put option = exercise price -50ETF market price. (If the calculation result is

Time value refers to the value implied by the possibility that the price fluctuation of the underlying option will bring benefits to the option holder during the validity period of the option.

The fourth step is to check the change of contract royalties.

Select the contract term, and then check the execution price in the middle column to quickly check the current premium quotation of the corresponding call or put option. At the same time, in the upper right of the analysis software, you can view the trend chart of 50ETF funds and the selected option contract fees, so that the price changes of contract fees can be seen at a glance.

Step 5: If the bought call option contract is profitable, click sell to close the position; if the bought put option contract is losing money, click sell to close the position. The seller's liquidation corresponds to the buyer's liquidation, which is the opposite of the buyer's operation.