The price change of 50EF option is not only the fluctuation of index. In addition, time and implied volatility also have some influence on the option price, especially when the index changes little.
1, the influence of time
The volatility of SSE 50 Index determines the intrinsic value of options. In addition to intrinsic value, options will have time value. The longer the time, the higher the value, so the time value is always decreasing.
When the index price is small, the decline of time value becomes the main factor affecting the premium, especially when the maturity date approaches. If you don't close your position in time, the decline of time value will become particularly fast. The value of the option contract itself will not increase or decrease significantly. At present, whether the option contract is subscribed or put, it will be reduced.
2. The implied volatility becomes lower.
Taking the contract as an example, under all the same conditions, implied volatility reflects the level of option price, and its price contract changes with implied volatility. Even if the index price can't offset the impact of implied volatility, the option contract price can't offset the impact of implied volatility, and even if the index price rises, the subscription will fall. Even if the index falls, put options will fall.
Implicit volatility reflects the uncertainty of option price. We can use insurance to understand implied volatility. We compare the implied volatility with the possibility of insurance accidents and the ratio of premium to premium. The higher the possibility of an accident, the higher the insurance premium, so the higher the implied fluctuation fee, the more expensive the royalty fee (the same preconditions as the contract are required here).