The profit of the option buyer is mainly the difference between the earned option contract MINUS the fee and handling fee of the royalty. The profits of the 50 option seller all come from royalties.
Example: Now I buy 100 SSE 50ETF option and subscribe for the contract in June of 3200. The current price is 0.0026 (I think the index will rise to 3200 points). As shown in the figure below:
Suppose the market rises that day, and the subscription contract price of 3200 rises to 0.0076. At this point, the liquidation profit is equal to
(current price-buying price) x? Contract unit? x？ How many sheets do you buy? =? profit
(0.0076-0.0026) x1000x100 = 5000 yuan?
The commission fee for the purchase contract is 0.0026x1000x100 = 2600 yuan (cost). The net profit is 5000 yuan, and the yield reaches 192%.
If the market continues to rise, there is no upper limit to the profit of this transaction. But the biggest loss is that the current price drops to zero and the royalty is 2600 yuan. Buying put options is the same calculation method.