The option T-shaped quotation takes the middle exercise price as the axis, with call (call) and put (put) options listed on the left and right respectively. If the exercise prices are arranged in ascending order from top to bottom, then the dark areas in the upper left corner and lower right corner are real-valued options, and the lower left corner and upper right corner are out-of-the-money options. The concepts of latest price, trading volume, and open interest are consistent with futures and stocks, but other indicators often confuse beginners, and the conventional definitions and explanations are difficult to understand. Here we "avoid the light and focus on the heavy" and intuitively list To help these indicators in trading, you don't need to know "what" these indicators are, as long as you know what they "do".

Trading volume and open interest show the activity of a certain exercise price option contract. Put option trading volume/call option trading volume (the larger the ratio, the more bearish the market sentiment is.

Implied volatility (IV) is the underlying volatility deduced from the option price, and the underlying history Volatility (HV) also has mean reversion characteristics. The larger the IV-HV difference, the greater the market divergence, and the underlying volatility is expected to increase.

Leverage ratio = underlying price/option price, and true leverage ratio = underlying. Price/option price × Delta. The higher the degree of out-of-value, the higher the leverage ratio. A negative real leverage ratio for a put option means that the option price decreases as the underlying asset changes by 1 unit. , the amount of option price change. A positive number represents a change in the same direction, and a negative number represents a reverse change. The delta of the call option ranges from 0 to 1. The higher the degree of real value, the closer the delta is to 1, and the delta of the at-the-money option is 0.5. On the contrary, delta is distributed from 0 to -1. Detla is additive. As long as the overall delta of the portfolio is kept at 0, a neutral hedging strategy is constructed, so delta is also called the hedging ratio or hedging ratio. p>

Gamma: The amount of delta change when the underlying asset changes by 1 unit. The Gamma value is always positive. It measures the error of the delta neutral strategy. When the underlying asset price changes by one unit, the new delta value is equal to the original value. The delta value is plus or minus the gamma value. Therefore, the larger the gamma value, the faster the delta value changes. When performing delta neutral hedging, the position with the larger absolute value of gamma requires neutral hedging adjustment more frequently. The higher the risk, the higher the risk.

Vega: The amount of the option price change when the volatility changes by 1%. Buy the CSI 300 ETF call option with an exercise price of 4.000 yuan, and the option price is 0.1362 yuan. The implied volatility is 14.74%, Vega is 0.0063, and other conditions remain unchanged. If the implied volatility increases by 1% to 15.74%, the theoretical option price will increase by at least 0.0063 to 0.1425 yuan.

Theta: How much the option value loses each trading day. The closer the expiration date, the greater the value of Theta, that is, the faster the time value is lost, and the higher the risk that the option buyer faces a reduction in premium.

Rho: The impact of risk-free interest rate changes on option price changes. The risk-free interest rate directly affects spot holding costs and financing costs, which in turn affects the underlying price. Rho has little impact on short-term transactions and out-of-the-money options, and has little impact on the real value of long-term transactions. Options have a certain impact. The larger the Rho, the higher the option price.

In short, when the underlying price is expected to fluctuate, the underlying price change × Delta can roughly estimate the degree of change in the option price. When the volatility changes, the volatility change × Vega can roughly estimate the degree of change in the option price.