How to short 50ETF options?
There are two angles to short, one is the value of short options, and the other is the volatility of short options.
The basic way to short the value of options is to sell options. If the call option is sold, the value of the call option will decline with the decline of the subject matter price, so the decline of the subject matter price is conducive to selling the call option; If the put option is sold, the price increase of the subject matter will be more favorable.
To short the volatility, it is necessary to establish a portfolio, that is, to sell the call options and put options with the same exercise price, expiration month and quantity at the same time, and the income can be obtained by reducing the volatility.
The above is the way to short 50ETF options. It should be noted that when shorting options, we should be wary of the sharp rise of option volatility, otherwise we will face greater losses.