2. Cost leverage: option cost leverage = current price of the underlying asset/royalty. Option represents the right to buy and sell an asset, and investors need to pay royalties to get the option, which is relatively low relative to the underlying asset, so investors can pry the underlying object at a higher price with less cost.
3. Income leverage: the income leverage of the option = the percentage change rate of the option price/the percentage change rate of the underlying asset price. After reading these, many investors still have no intuitive impression of the leverage of options, so how is the leverage of option returns reflected?
4. The price of option premium is mainly composed of intrinsic value and time value: because the value of the subject matter price change is consistent with the value of the option intrinsic value change, and the option premium is far less than the price of the underlying asset, the premium shows certain leverage.
5. For example, the current price of the underlying asset of the option is 65,438+00 yuan, and the price of the call option is 65,438+0 yuan. Soon, the price of the underlying asset will increase by 65,438+00%, and the intrinsic value of the call option will increase by 65,438+00% = 65,438+0, so the price of the call option will increase by 65,438+. (For the sake of understanding, this case does not consider the change of time value and volatility).