Suppose we want to buy a call option with an exercise price of 2.600. At this time, the formula for calculating the option premium is (the latest price is 4 15* 10000 contract unit =4 15 yuan), which means that we can buy a call option contract by paying the option premium of 4 15 yuan.
Formula: royalty = settlement price of option contract * trading unit
The calculation formula of option premium is very simple, just like the calculation method of stock buying market value. You can understand and get started by buying an option contract once.
What is the value of the option? What is the value of the option?
First of all, the value of options mainly consists of the following two kinds of values:
Option value = connotation value+time value
Intrinsic value is the profit that can be obtained when the option contract is executed immediately.
For call options, intrinsic value is the difference between the exercise price and the futures price.
For put right, intrinsic value is the difference between the exercise price and the futures price.
Time value refers to the part where the premium exceeds the intrinsic value before the option expires, that is, the option premium MINUS the intrinsic value.
Generally speaking, the longer the expiration time, the greater the time value of options.
As the expiration date of options approaches, the time value of options gradually decreases. On the expiration date, the option no longer has time value, and the option value is all connotation value.
Second, options can be divided into real options, flat options and virtual options according to the relationship between the exercise price and the market price of the subject matter.
Real option refers to the option with intrinsic value. When the final price of the call option is lower than the current market price of the relevant futures contract, the call option has intrinsic value. When the final price of a put option is higher than the current market price of the relevant futures contract, the put option has intrinsic value.
Virtual option, also known as out-of-price option, refers to an option with no intrinsic value, that is, a call option with a price higher than the current futures price or a put option with a price lower than the current futures price.
Parity option means that the exercise price of the option is equal to the target market price, or equivalent option.
Generally speaking, flat options have the greatest time value and are usually the most active in trading. When the option is at a flat value, it is difficult to determine the direction of the option to real value or imaginary value. If it is converted into real value, the buyer gains; if it is converted into imaginary value, the seller gains, so it is the most speculative and has the greatest time value.
Real option premium = connotation value+time value;
Equal option premium = time value;
Virtual option premium = time value.
How to calculate the profit and loss of options? How to quickly calculate the breakeven point of options?
Similar to futures, the closing profit and loss of options is the premium difference between buying and selling options. As long as the selling price MINUS the buying price is positive, you will make money; If it is negative, you will lose; If it is zero, you will lose money (regardless of transaction costs). For example, if you buy at a premium of 20 yuan/ton (excluding call options and put options) and sell at a premium of 30 yuan/ton, you will earn 10 yuan/ton.
According to the four basic positions of options and the long and short positions of futures, different combination strategies can be combined. These six basic strategies fall into two categories. Long strategy includes futures long position, buy call option and sell put option, and short strategy includes futures short position, sell call option and buy put option.
For futures, the breakeven point is the opening price; For call options, the breakeven point is equal to the exercise price plus premium; For put options, the breakeven point is equal to the exercise price MINUS the premium; The break-even point of strategy combination is obtained on the basis of basic strategy.
It should be noted that the break-even point is the same for both buyers and sellers. For example, call options, whether buying call options or selling call options, the breakeven point is equal to the exercise price plus the premium.