50ETF option is the right and contract to buy or sell SSE 50ETF index fund at a certain price (exercise price) at some future time (option expiration date) after you pay a certain amount of royalties. After the expiration, you can choose to exercise this right and get the difference income, or you can choose not to exercise this right and lose the royalties.

It is good for us to understand the concept of options. In fact, when trading 50ETF options, what we need more is our judgment on the future trend of the market.

This is also very simple:

If you think the SSE 50 index will rise, buy a call option contract;

When you think the SSE 50 Index will fall, buy a put option contract.

50ETF option is a trading contract with 50ETF as the subject matter launched by Shanghai Stock Exchange. It is the only investment tool that can buy up and sell down (subscription and put) in the secondary market at present.

The trend of this option is closely related to the broader market, so when choosing to operate the 50ETF option, it is mainly necessary to analyze the overall trend of the market today and in the future. Simplify the analysis process, choose to buy a subscription contract when looking at the market, and choose to buy a put contract when looking at the short position, which is simpler than analyzing individual stocks.

How to choose the right contract for trading;

1. ups and downs:

-Choose a virtual contract: low royalty and high leverage. In the case of accurately grasping the general trend, the fluctuation of virtual value contracts is greater, which can bring more significant benefits.

2. Small ups and downs:

-Choose a contract with light real value: moderate royalties. At this time, a slight real value contract can better capture the benefits brought by the small changes in the price of 50ETF, which is relatively safe.

Trading principles of 50ETF option contracts

I. Contract type:

1.50ETF call option:

The right to buy 50ETF funds at the agreed time and price.

2.50ETF put option:

The right to sell 50ETF funds at the agreed time and price.

Second, the transaction direction:

Option trading is divided into buyer and seller. For option buyers, option is an investment mode with limited risks and unlimited theoretical returns. For option sellers, options are an investment method with limited returns and unlimited theoretical risks. The relationship between the two is similar to that between the insured and the insurance company.

Option buyers are like the insured: by paying the premium, the insured has the right to claim compensation from the insurance company when there is an accident during the insurance period, but if there is no accident during the insurance period, the biggest loss is only the premium.

Option sellers are like insurance companies: if the insured does not make any claims during the insurance period, the biggest gain is the full premium, and once the insured makes claims, the amount of claims may far exceed the premium itself.

Buyers and sellers of call options and buyers and sellers of put options:

1. call option buyer:

Pay the use fee and get the right to buy 50ETF funds at the agreed price on the expiration date given in the option contract, but do not undertake the buying obligation (buyer's call transaction).

2. Option seller:

Once the buyer exercises his rights (the seller releases the transaction), he will collect the use fee and undertake the obligation to sell 50ETF funds according to the contract.

3. Put option buyer:

Pay the royalty and get the right to sell 50ETF funds at the agreed price on the expiration date given in the option contract, but do not undertake the selling obligation (the buyer puts the transaction).

4. Put option seller:

Once the put option is exercised by the buyer (the seller is bullish), the user fee will be charged and the obligation to buy 50ETF funds as stipulated in the contract will be assumed.

Three. Expiration month

The current month, the next month and two consecutive quarters.

Option explanation:

For example, if the current month is 1 month, the due months are 1 month, February, March and June respectively.

Fourth, the exercise price

At least one flat value, several real values and several imaginary values.

Option explanation:

For call options, the exercise price below the market price is called true value, the one equal to the market price is called parity, and the one above the market price is called imaginary value. From real options to virtual options, the premium quotation should change gradually from expensive to cheap.

For put options, the exercise price above the market price is called true value, the one equal to the market price is called parity, and the one below the market price is called imaginary value. From real options to virtual options, the quotation of royalties should gradually change from expensive to cheap.

5. Maturity date (exercise date)

The fourth Wednesday of the expiration month (postponed in case of legal holidays)

Option explanation:

When the contract expires, the expiration value of the virtual option will be zero, and if the real option is not executed or closed, the expiration value will also be zero. Special attention should be paid to the risk of maturity.

Contract scale of intransitive verbs

Each option contract represents 10000 50ETF fund.

Option explanation:

For example, a premium quotation for a 50ETF contract is 0.0 136, which means that you need to pay a premium of 0.0 136 * 10000 copies = 136 yuan to buy the contract. If the contract premium rises to 0.0200, the buying contract gains 74 yuan.

The size of royalties is mainly affected by the duration, execution price, market price and volatility. In the stock market, options are a good hedging tool. A deep understanding of 50ETF options can help us pay attention to the risks of options while gaining more benefits.