SSE 50= SSE 50 Index (50 sample stocks, such as China Platform, Kweichow Moutai, China Merchants Bank, etc. )
ETF= transactional open index fund, also known as exchange traded fund (ETF).
Option = contract (and the variety we trade is the contract of SSE 50ETF). The concept of option is the right to buy a contract in the future.
The trading operation of l 50ETF option contract is as follows:
Pay attention to the following points before trading 50ETF options: 1. The month of 50ETF options; Second, subscription and put; Third, the exercise price; Fourth, how much (royalty) does a 50ETF option need at least; Finally, pay attention to profit and loss.
1. Regarding the month selection of 50ETF options, generally, four-month trading contracts will be displayed in a quarter, which means that you can choose these four-month contracts at will during this time period. Generally, we suggest focusing on the main contract transactions of the month.
2, the choice of subscription and put, very simple understanding, subscription is long, put is short.
Call option has many characteristics, which is very suitable for a strong bull market and is one of the favorite option strategies for investors. The biggest risk is to lose all royalties, and the theoretical maximum income is unlimited. The breakeven point at maturity is the execution price+royalty.
Put option is the opposite of subscription. When investors invest in options, it is very suitable for a strongly bearish market. Losing all royalties is its biggest risk, and theoretically there is no upper limit to the highest income. The break-even point at maturity is the execution price-royalty.
3. Exercise Price Assume that the contract price of SSE 50etf option is 2.6 yuan per share. If a contract is bought at the time of purchase, the exercise price is 2.6 yuan. If the premium of the current option is 0.2 yuan, then the investor needs to spend 0.2x 10000=2000 yuan. For the buyer of options, the exercise premium of first-hand options is equal to the transaction price multiplied by 10000, and the premium of SSE 50etf options needs to be multiplied by 10000. When trading options, you need to pay an extra fee (two-way charge).
4.50ETF What is the price of ETF options? Let's look at the picture and find out that the average subscription contract is 0.0855, which is 855 yuan according to the exercise price of 3.500, because it has to be multiplied by the contract unit 10000.
Source Baidu Caishun Option
In fact, in the face of so many options contracts, investors who just started trading are very confused. Generally, when they first started trading, Xiao Hui from Caishun Finance and Economics suggested buying the one with the largest trading volume in small batches and trying the trading process. Generally, the two contracts have the largest positions and the best liquidity near the flat value. Investors who have just entered the world of options will choose to buy flat-value contracts. The flat option belongs to a midpoint position, and both buyers and sellers can move forward to the real option and retreat to the imaginary option.
The way to distinguish the liquidation contract is to correspond to the intermediate exercise price according to the latest price in SSE 50ETF market, which is the liquidation contract.
5. Finally, pay attention to profit and loss. The maturity date of 50ETF options is in the options market. When investors choose an option contract, other factors being the same, the option with long remaining term contains high time value, and the price is naturally more expensive. However, options with short remaining period have low time value and naturally cheap price, and the contract price will gradually shrink over time.
Therefore, in the process of holding, if there is profit, you can close the contract in your hand. As time goes on, this contract becomes less and less valuable.