According to the concept of option, the obligee has the right to buy or sell an agreed number of contract objects at an agreed price in the future;

A contract that gives the obligee the right to buy assets, that is, a call option, also called a call option. Whether to exercise the right is the right of the obligee and does not undertake the purchase obligation;

The contract that gives the creditor the right to sell assets, that is, put option, also called put option, is the creditor's right to exercise or not, and does not undertake the obligation to sell.

2. According to the time of exercising rights

Options have a time limit, and if there is a time limit, there will be an expiration date.

If the obligee can exercise his rights on any trading day before the expiration date (including the expiration date), then this is an American option;

If the obligee can only exercise his rights on the expiration date, it is called European option, which is also called expiration date exercise.

In the list of basic terms of the option contract, we can see whether it belongs to American option or European option.

3. Press trading places

On-site options are traded centrally in the exchange, and the contracts adopted are standardized contracts uniformly formulated by the exchange;

OTC options, using non-standardized contracts, have no strict restrictions and norms on contract terms, and are not subject to strict supervision like OTC options. They will be tailored to the needs of market participants and generally traded in non-centralized trading places. Therefore, the lack of OTC secondary market will cause its liquidity to become a problem.

In fact, whether in the market or outside the market, the option itself is a forward contract that can be executed in the future. In real life, there are a lot of life examples at home and abroad, but the standardized, standardized and institutionalized floor option market began with the birth of Chicago Board Options Exchange in 1973, and the first stock option was introduced in Hong Kong in 1995, ranking first in the mainland in 20 15 years.

4. According to the subject matter of the contract

Financial options, the subject matter of the contract is the corresponding financial products or financial indexes, such as stock options, ETF options, stock index options, interest rate options, foreign exchange options, etc.;

In commodity options, the subject matter of contracts is commodity futures contracts, such as copper options, sugar options and natural rubber options.

5. According to the relationship between the exercise price and the market price of the subject matter of the contract.

The underlying assets of an option contract have two price concepts, one is the exercise price agreed in the contract, and the other is the market price of the underlying assets of the contract. By comparing these two prices, an option classification concept is obtained:

Real option, also called in-price option, refers to a call option whose market price is higher than the exercise price or a put option whose market price is lower than the exercise price;

Equal option, also called price equal option, refers to call and put options whose market price is equal to or very close to the exercise price;

It should be noted here that when the market price is very close to the exercise price, it can also be regarded as an option.

Virtual option, also called out-of-price option, refers to a call option whose market price is lower than the exercise price or a put option whose market price is higher than the exercise price.

It is easy to distinguish the average value of an option, a call option or a put option, but it is a bit confusing whether it is real or imaginary.

In practical application, I found a method:

If you look at the market price and call options are bullish, then the higher the market price, the more real it is, so the market price is much higher than the exercise price, which is deeply true; Put option is bearish, so the lower the market price, the deeper its true value, so the put option whose market price is lower than the exercise price is the true value.

If you look at the exercise price, call options should be bought according to the exercise price, so the lower the buyer exercises more, so the exercise price is lower than the market price is the real value; If the buyer exercises a put option, it should be sold at the exercise price. The higher the exercise price, the more the buyer sells and the greater the actual value of the contract.

Option information comes from: option sauce

There are four options:

1. Purchase and subscription: You have the right and need to pay the option fee. If you buy at a certain price, then the exercise price is a loss at the place of purchase. If his asset price exceeds this exercise price and continues to rise, the longer and higher the time, the more profits will be.

Theoretically, the loss of buying a call option is limited, and the gain is infinite (the loss is a premium, which has been earned since the skyrocketing).

2. Sell and subscribe: You think the current share price of a stock is 10 yuan, and this stock will not go to 50 yuan before April. It is ok for you to make a profit by selling this option, but I suggest you not to do so. The risk of unilateral selling is extremely high. If the option is sold separately, the income is limited and the loss may be infinite.

3. Buying and selling: Buying requires an option fee, and selling an option is to make a profit when the stock price falls. For example, if you sell stocks in 50 yuan, when the stocks arrive in 60 yuan or 70 yuan, then you will have no profit, only when the stocks are smaller than those in 50 yuan.

4. Selling put options: Many people who hold the stock spot get the option fee by selling the positive income of the option. The risk at this time is that if the stock falls, the seller will lose money.

It is easy for novices to mistakenly think that there is a huge price fluctuation before the expiration of options, and you can profit from this fluctuation. Many people say that options are mainly speculative, because you profit from price fluctuations, but this is not the case.

As far as the whole option user is concerned, it is not speculation. Its function is not a unilateral choice. You profit from price changes. Generally speaking, it is a comprehensive thing. You can hedge risks, increase income and reduce costs. Therefore, it is necessary to use it flexibly and formulate strategies.

Doing options is more about getting long-term stable profits, rather than doubling this profit several times. This is the case in most cases. But it does not rule out a particularly good opportunity. You can also be a unilateral buyer and get double profits, which also happens from time to time.

Options have many functions. If you can master them well, you can control your risks to a great extent and increase more profits.