It is not difficult to see that options are different from the trading of stocks and futures, and the rights and obligations of buyers and sellers of options are obviously asymmetric. To make a simple analogy, the option buyer can be understood as buying a house, and the option seller can be understood as selling a house.
Option, as an important financial derivative, has been in China for four years, and now it is more and more popular.
The SSE 50ETF option became the first domestic on-site option variety and was listed on the Shanghai Stock Exchange. It not only announces the arrival of China option era, but also means that China has a full set of mainstream financial derivatives. At this point, 20 15 is also called "option year" in China.
Take the upcoming 50ETF option of Shanghai Stock Exchange as an example:
50ETF call option February 2.55, price: 0. 1570.
Here, 50ETF is the underlying asset of the option contract, subscription is the right, February is the expiration date, and 2.55 is the exercise price. The option price refers to the current market price of such a right.
From date to date, options can be divided into two categories: European options and American options. The expiration date of the option agreed by both parties is called the expiration date, and if the option can only be executed on the expiration date, it is called the European option (China implements the European option); If an option can be exercised at any time on or before the expiration date, it is called an American option.
From the exercise price, options can be divided into three categories: real value (in-price), imaginary value (out-of-price) and equal value (parity). For call options, the exercise price base market price is a virtual option. Put options are the opposite.
From the perspective of the rights granted by options, options can be divided into two categories: call options and put options. Subscription options give option buyers the right to purchase the underlying assets at a specified price at an agreed time; Put option gives the buyer the right to sell the underlying assets at a specific price at an agreed time.
The following figure shows the simulated trading interface of Shanghai Stock Exchange:
Here we put aside the definition in the book and use two popular examples to talk about call options and put options.
Call option (call option)
Xiao Wang wanted to buy a house and went to the seller.
Seller: We don't have it in stock now. We delivered the goods on April 1 day, with a set of 3 million yuan (exercise price) and a down payment of 30,000 yuan (commission).
Xiao Wang: Why do you have to pay 30,000 yuan first?
Seller: This is the royalty. You are eligible to sell it to you at a price of 3 million.
Xiao Wang: What if the house price goes up?
Seller: I still sell you 3 million yuan when the house price goes up, and I still sell you 3 million yuan when the house price goes down.
Xiao Wang: I won't buy it if it falls.
Seller: Yes, but royalties are non-refundable.
Xiao Wang: Why?
Seller: This is the rule of buying a house here!
Xiao Wang: If I buy it, can 30,000 royalties cover the house price?
Seller: No, this is royalty, and you can't charge the house price.
Xiao Wang: So this suite is not equal to 3.03 million?
Seller: You can understand this. If the house price rises to 3.03 million, you just don't make a profit or lose money, just like buying an existing house.
Xiao Wang: It will go up then, so I don't want to buy it, okay?
Seller: Yes, as long as it exceeds 3 million, if the price at that time is reduced by 3 million, I can refund the difference to you. For example, if it rises to 30 1 000, your royalties can be returned to 1 000, resulting in a loss of 20,000. It will make money if it rises above 3.03 million.
Xiao Wang: If it rises to 3.5 million, won't I earn 470,000?
Seller: You can understand this.
Xiao Wang: If it rises to 3.5 million tomorrow, can you give me a refund of the difference?
Seller: No, this is the American way of playing. I play European style here, and I must exercise my rights in April 1.
Xiao Wang: OK, I see.
Put option
Lao Zhao has a house to sell and wants to talk to an intermediary.
Agent: The house is not easy to sell now. I can only guarantee to give you 3 million yuan (exercise price) in April 1. Is this acceptable?
Lao Zhao: OK. How much is the charge?
Intermediary: pay a deposit of 30,000 yuan (commission) first.
Lao Zhao: What? I have to give you money to sell the house?
Intermediary: This is the rule of selling houses here! You paid the money, and I promise to give you 3 million in April 1.
Lao Zhao: What should I do when the house price falls?
Intermediary: I will give you 3 million yuan if it falls, and I will pay for it. If it goes up, I can only give you 3 million, and the profit is on me.
Lao Zhao: Then can I give up?
Agent: Yes, but the deposit of 30,000 yuan is non-refundable.
Lao Zhao: So if I don't give up, will you give me 3.03 million?
Intermediary: Sorry, it's still 3 million. This $30,000 is a deposit and cannot be charged.
Lao Zhao: What are the rules?
Intermediary: royalties.
Lao Zhao: If the house price drops by then, can I give up? If I give up, you don't have to pay.
Agent: Yes, I will deduct the current price from 3 million to refund the difference. If it falls to 2.99 million, it will be refunded to you 1 10,000; If it falls below 2.97 million, it will not only keep the house, but also make some money for nothing, understand?
Lao Zhao: OK, I see.