1. Call Option Trading 1. On May1,the option buyer bought a wheat futures call option with an exercise price of 1600 yuan/ton due in September, with a premium of 30 yuan/ton. If the futures price rises in the later period, the commission will also rise, for example, to 50 yuan/ton. Then: On May 12, sell the wheat call option with the exercise price of 1600 yuan/ton due in September at a premium of 50 yuan. So to earn 20 yuan/ton (50-30), please pay attention to the two lines marked above. Only the royalty is different from the date of purchase and sale, and other contents are the same (month, exercise price, variety, option type-call option), which is completely the transaction of royalty. Here, when you buy, royalties will be withdrawn from your account, and when you sell, royalties will be withdrawn. In other words, you have to pay royalties for buying options and collect royalties for selling options (of course, you have to collect money for selling your own things). So, what's the difference between buying call options and buying futures? Buy the wheat futures call option with the exercise price of 1.600 yuan/ton due in September, and the premium will be 30 yuan/ton. Buy futures due in September at the price of 1.600 yuan/ton. The former only needs to pay royalties to 30 yuan, and the biggest loss is only 30 yuan. Since the maximum risk is set, there is no need to pay the deposit and there is no daily settlement risk. In the latter case, futures need to pay a deposit of 1600 * 8% = 128 yuan, and the cost is higher than that of options. Moreover, if the futures price falls, the daily settlement also faces the risk of additional margin. Insufficient replenishment will also be forced to close the position. Note: Exchanges charge 5% margin, while brokers generally charge 3% more. 2. If someone buys an option seller, someone must sell it, otherwise the transaction cannot be carried out. You are bullish, so buy, others may not be optimistic, so sell. This so-called "benevolent people have different opinions, and wise people have different opinions." On May 12, the wheat futures call option with the exercise price of 1600 yuan/ton due in September was sold, and the premium was 50 yuan/ton. If the futures price falls on May 20th, the premium will also fall. For example, if it falls to 20 yuan, it will make a reverse transaction (liquidation): on May 20th, it will buy a wheat futures call option with an exercise price of 1.600 yuan/ton due in September, with a premium of 20 yuan/ton. Profit 30 yuan (50-50 split). Because the seller's biggest income is commission, it is necessary to pay a deposit like futures, and how much to pay is determined by the exchange. At this point, you may say that the seller's biggest gain is only royalties. Isn't that risky? In fact, the risk lies in the trend analysis of futures prices. The buyer thinks the price will go up. If the price comes down, won't the seller's income be equally considerable? Moreover, from the practice abroad, the seller's income is indeed considerable, and the buyer has lost a lot of royalties. This is like doing futures, some people buy and some people sell; Some people lose, some people win. Everyone can't have the same view of the market outlook. Specifically, the seller can be: people who disagree with the buyer's opinion, people who buy positions and close positions (the original buyer is now closing positions), people who use different trading strategies, futures and options arbitrageurs, and market makers. 3. The contract sample below the option contract, you don't need to delve into it, just need to know that both options and futures are contract transactions, and both have contracts. High-quality strong gluten wheat option contract (sample) trading unit 2 tons of high-quality strong gluten wheat futures contract quotation digits (yuan)/ton minimum change price 0.5 yuan/ton daily price maximum fluctuation limit is the same as that of high-quality strong gluten wheat futures contract. At the beginning of high-quality strong gluten wheat option trading, the following exercise prices are listed in integer multiples of the exercise price range standard: the exercise price closest to the settlement price of the previous day of the relevant high-quality strong gluten wheat futures contract (between two exercise prices, whichever is the greater), as well as three consecutive exercise prices higher than this exercise price and three consecutive exercise prices lower than this exercise price. Executive price range When the executive price is lower than 1 1,000 yuan/ton (including 1 1,000 yuan/ton), the executive price range is 10 yuan/ton; When the execution price is between 1000 yuan/ton and 2000 yuan/ton (including 2000 yuan/ton), the execution price range is 20 yuan/ton; When the execution price is higher than 2000 yuan/ton, the execution price range is 30 yuan/ton. Except for the latest futures delivery month, the trading hours of other futures months are the same as those of high-quality strong gluten wheat futures contracts. Option exercise An option buyer may exercise his rights on any trading day within the validity period stipulated in the contract. The expiration date of the contract on the fifth trading day one month before the contract month is the same as the transaction fee on the last trading day. 0.2 yuan/hand (including risk reserve) trading code call option (WSC); Put Option (WSP) is listed on Zhengzhou Commodity Exchange. Put option trading 1. Conceptual analysis of put option In the above analysis, we only introduced the concept of call option. In fact, there is another concept-put option. Shareholders are always trapped when stocks fall. How nice it would be if, like the buyers of call options, they could set the price or have autonomy over the risk of falling prices? ! Put option refers to the right to sell at the strike price as long as the premium is paid. For example, if the stock price is 12 yuan, you can guarantee to sell it at any time at 12 yuan by paying the royalties of 3 yuan. If the stock price falls to 8 yuan, 5 yuan and 3 yuan, you can press 12 yuan. If the price rises above 16, 18 and 20 yuan, you can void the option and sell it at a higher price. At this point, you may have seen the mystery of options! If you pay royalties, you will have autonomy. And you don't have to bear the pain of a bear market. Whether it is a call option or a put option, options give you autonomy as long as you are willing to pay a certain premium first. In May 10, I bought the wheat futures put option with the strike price of 1600 yuan/ton due in September, and gained the right at a premium of 20 yuan/ton. As for the put option, the seller is the same as the call option: on May 12, the seller sells the wheat put option with the exercise price of 1600 yuan/ton due in September, at a premium of 40 yuan. If the premium falls to 15 yuan on May 20th, then: buy a wheat futures put option with the exercise price of 1.6 yuan/ton and the premium is 15 yuan/ton. So the profit is 35 yuan (40- 15).