1. Option price

Option price, also known as royalty, option fee and insurance premium, is the fee paid by the option buyer to the seller in order to obtain the right to buy or sell the underlying assets at the agreed price.

2. Basic assets

The basic asset, also known as the subject matter, is also the subject matter of the option contract, which is the asset agreed in the option contract and purchased or sold by the buyer when exercising his rights.

The underlying assets of options can be spot assets or futures assets; It can be physical assets, financial assets, or financial indicators (stock price index).

3. Direction of motion

The exercise direction refers to the operation direction of the option buyer when exercising, which can be divided into buying and selling.

Step 4 Practice methods

Exercise mode, also known as execution mode, refers to the time when the option bulls can exercise the options stipulated in the option contract.

5. Executive price

Exercise price, also known as exercise price and exercise price, is the price agreed in the option contract when the buyer exercises the right to buy or sell the underlying assets.

6. Option expiration date and option expiration date

Option expiration date: refers to the latest date when the option buyer can exercise the option.

Option expiration: refers to the last time when the option buyer can exercise his rights.

Second, read the 50ETF option contract again.

First of all, this picture is the option contract of SSE 50. Its basic asset is SSE 50ETF, which is a transactional open-end fund that tracks SSE 50 index.

The trading code of this fund is 5 10050, and the current price is the price of this ETF, 2.738 yuan.

Secondly, this picture contains the transaction code of the contract.

The transaction code consists of two parts. The above is the transaction code of the underlying assets, which is the 5 10050 we just mentioned. Then the letter c stands for option call or call option. Because call options are called in English, they start with C.

Then, the letter P indicates whether this option is put or sold.

Because put option is called put in English, and the first letter is a p,.

Next, the code indicates that the expiration date of the contract is in April 2020.

02350 means that the exercise price is 2.350 yuan, which means that if you exercise on the maturity date and are bullish, you can buy SSE 50ETF fund at 2.350 yuan/share.

Then, on the expiration date, if the SSE 50ETF price is higher than 2.350, you exercise the right, and then you pay 2.350 yuan to get back a 50ETF.

The current price of the call option is 0.3829 yuan.

Other information, as well as the rise and fall of options today and the closing price of the previous day, are all on this chart.