The expiration date is also the prompt date. On this day, the pre-declared option contract must be delivered. In 50ETF options trading, if you are the buyer and still hold hypothetical contracts on the maturity date, the value of these contracts will all be zero. Please pay attention to the transaction risk. If you are a seller or cover an open contract, you need to deliver the share of 50ETF funds before the maturity date is closed.
Characteristics of maturity date of 50ETF options
1.50ETF option contracts have monthly differences, and there are different contracts in different months, so there are current month contracts, next month contracts, near month contracts and far month contracts.
2. Each contract has remaining time, such as remaining days: 20 days, which means that there are only 20 natural days left before the contract is delivered, including weekends.
3. The closer to the expiration date, the less valuable the virtual value contract is, even falling to several yuan or dozens of yuan per copy.
4. The closer to the maturity date, if the index of 50ETF or the broader market fluctuates more violently, then the contract will rise and fall greatly on that day, similar to gambling.
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What is the best way to trade according to the maturity date of 50ETF options?
In trading, you need to pay attention to the following aspects. This is the lesson of my friend trading 50ETF options, and I lost a lot of money as tuition. I hope it will be useful for you to sort it out.
1. SSE 50ETF option contract price = intrinsic value+time value, in which the time value decays faster and faster as the expiration date of 50ETF options approaches, especially when the market is sideways, you will find that both put contracts and subscription contracts are losing money, which is caused by the time value decay.
2. There are about 20 days left before the expiration date of the contract. It is recommended to focus on ultra-short-term trading (the buyer's position should not exceed two days). Because at this time, the time value decays quickly, and the direction is wrong, and the loss will be greater and greater. By the way, if it doesn't last, the profits will soon be retreated.
There are about 20 days before the expiration date of the contract. If you want to be a long-term buyer, it is recommended to buy and open a position in the contract next month.
4. Don't buy a deeply fictitious contract. The deep hypothetical contract shows that the price is very cheap. Don't buy the contract price below 100 yuan easily. Overall probability: the risk is greater than the benefit.
5. Strictly take profit and stop loss. The SSE 50ETF option contract is risky and risky, and the direction is wrong. We must cut the meat decisively. Only by covering most of the principal can we get more benefits.