Intrinsic value call option put option
Real option fee has futures market value >; Option execution price+option futures market value; X+C, net profit, S=X+C breakeven; X<S & ltX+C, the loss is s-(x+c);
If the market price S falls, the buyer can choose not to exercise the option, and the biggest loss is the royalty C.
People who call options have limited losses and unlimited profits.
② Selling call options
Selling a call option is different from buying a call option. This is an obligation, not a right. If the buyer of the call option asks to exercise the option, then the seller of the call option has no choice.
If you sell a call option with the strike price of X, you can get royalty income C.
If the market price s falls and the buyer fails to perform the contract, the seller will get all the royalties c;
If s is between x and X+C, the seller gets part of the commission;
If s is greater than the break-even point, the seller will face the risk of rising target price.
Short options have limited profits and unlimited potential losses.
Put option
It means that the option buyer has the right to sell goods or futures to the option seller at a certain price within a specified time, but does not undertake the obligation to sell. Put option is also called put option, put option and put option. In the transaction of put options, investors who buy put options are optimistic that the price will fall, so they buy put options; The seller of a put option expects the price to rise or not.
The right to choose between the two parties
Also known as "double options". It means that the option buyer has the right to buy and sell commodities and futures at the price agreed in the contract within a certain period of time after paying a certain royalty to the option seller. Investors buy call options and put options at the same time, which is an investment strategy they adopt when they are uncertain about the future price. For people who buy two-way options, as long as the price fluctuates, they can exercise their rights and profit from it. But generally speaking, the seller of this option firmly believes that the price will not change much, so he is willing to sell this right and get a certain royalty income.