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What is the trading mode of put stock index options?

author:It's options that I understand

This article comes from the official account: Option Understand

If the market is not at the top, then you must understand put! But why is this? Today, I will use the simplest and largest vernacular language to share with you through examples!#上证50etf期权##期权交易##期权日记#

What is the trading mode of put stock index options?

Put options

Put options are put options, I believe we all know what options are, and similarly, I believe that we all know that options are divided into put options and call options, among which put options can be simply understood as bearish, and call options can be simply understood as bullish.

What is the trading mode of put stock index options?

The option itself can be understood as a kind of contract, you and I agree, I spend a little money, in the future, after a period of time, with the current agreed price, to buy your goods at that time.

Specifically, for example: I now pay 0.5 contract fee to make an agreement with you, and now I will buy this goods with you at a price of 5 a month.

The option is the agreement, but when the value of the goods exceeds 5 after a month, I ask for the exercise (to get the goods) or to close the position (sell the contract and get a direct profit).

And if the value of this goods does not exceed 5, or even falls lower than 0.5, then I will not exercise the right and only lose my 0.5.

In this case, the investor can get an option in the future and does not have to bear the fluctuations in the price of the goods.

What is the trading mode of put stock index options?

What is the trading mode of put stock index options?

The put stock index options trading mode is actually mainly used in the case of market conditions, after all, it is a put option, of course, it should be used in the next situation. Put stock index options can be divided into buy and sell.

Buying put options is mainly used to hedge risks, and it is a very useful tool when hedging some other underlying risks, which means buying put options corresponding to the stocks you already own to hedge against the possible downside risk.

That is to say, after buying a put option, if the stock goes down as you expected at the time, the value of the put option will rise, and the value of the put option can be offset with the loss of the stock, at least it can relieve the pain!

And selling put options is actually bullish, that is to say, selling put options and buying put options are expected to be different, you think, when you look down, you will naturally buy a put can be put, and if you are not bearish, then you must sell the bearish in your hand.

What is the trading mode of put stock index options?

However, generally speaking, it is not recommended for novices to use the seller, and it is better to figure out the buyer first.

What are the characteristics of put options? Why do we have to understand put when the market is not at the top?

In other words, why buy put options? Simple, just one sentence: can be put! Put options have a function that we can't mention, that is, zuokong, although this thing is not good, but it can make us strong to go on, always in the market first, before we can contribute our own strength!

The above is all the content of options to understand the market is not the top, you must understand put, put stock index options, what is the trading mode, check out our more knowledge, free books!