Options are mainly divided into call options and put options, which can be found in the quotation software. Under the transaction form between the buyer and the seller, the buyer who subscribes for the option has the right to purchase the specified number of underlying securities from the option seller at the exercise price within the specified period according to the contract content; At this time, when the seller of the call option is exercised, he is obliged to sell a specified number of underlying securities at the exercise price.

The put option buyer has the right to sell the specified number of underlying securities to the option seller at the exercise price within the specified period according to the contract; A bearish seller is obliged to buy a certain number of underlying securities at the exercise price when exercising his rights.

The basic characteristics of call option: the value of call option is positively related to the trend of stock price; There is no upper limit on the holder's income, and the biggest loss is the option premium; There is no upper limit on the maximum loss of selling call options; Only when the market price of the subject matter of the contract is higher than the exercise price can the option be exercised, otherwise the exercise will cause additional losses.

The basic characteristics of put option The value of put option is negatively correlated with the trend of stock price. There is an upper limit on the holder's income, and the biggest loss is the option premium; The biggest loss of selling put options starts from the upper limit; Only when the market price of the contract is lower than the exercise price, the put option has the exercise value, otherwise the exercise will cause additional losses.

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