This article comes from the official account: Option Understand
Today's options understand what the end date right means? How to play? The end date right, also known as the expiration date right or the last trading date right, refers to the date of the last valid exercise of the right specified in the option contract. #期权交易##上证50etf期权##期权日记#
What does the end date right mean?
The end-date option refers to the option that expires on the expiration date of the option contract. This option allows the holder to make the final exercise decision on the option they bought or sold on the expiration date. Typically, the exercise of an option must be completed during trading hours, which is specified by the exchange. The end-of-date option gives investors the opportunity to adjust their strategy on the last trading day before the option expires.
How do I trade end-of-date options?
Terminal options refer to options contracts that are about to expire and are usually traded one or two days before the expiration date. Due to the rapid erosion of its time value, the premium price of the final option is relatively low, which provides investors with an opportunity to make a small profit, but also carries a high level of risk. Here are some trading strategies and considerations for end-date options:
Contract selection: Prefer at-the-money or slightly real-the-money options contracts, as these contracts have a larger gamma value and are more sensitive to changes in the price of the underlying asset.
Position management: Due to the high risk of terminal options, investors should control their investment positions to avoid significant losses due to excessive positions.
Buying is better than selling: Investors are advised to buy the last date option rather than sell it, as selling the last date option is extremely risky.
Liquidity factors: Pay attention to the liquidity of the contract, especially on the expiration date, as insufficient liquidity may result in the inability to close the position.
Take profit and stop loss: If the value of the option rises, you should consider taking profit at the right time to avoid profit taking due to market reversal.
Risk management: Terminal options trading requires a stronger sense of risk control, a rational approach to deep out-of-the-money options, and avoidance of excessive speculation.
Investment philosophy: Investors should have the right investment philosophy, invest rationally, and avoid gambling mentality.
Signal prediction: Judge the target in the last few days or on the exercise day, observe the synergy of the main constituents and the index, and predict the volatility.
Rollover of Month: For investors who do not intend to exercise their options or have no hope of exercising their position orders, they should prepare for the rollover of their positions for a month before the option is about to expire.
Due to its high risk and high return characteristics, terminal options are suitable for experienced investors to trade after fully understanding the relevant risks. For first-time investors, it is advisable to start with the basics and gain experience through simulated trading.
Is it true that the doomsday weight has increased a thousand times?
It may be an exaggeration to say that the end of the option will increase by 1,000 times, but 100 times is still no problem, and on February 25, 2019, there was a contract for options (50ETF to buy February 2800) that rose 192 times on the same day.
Recently, on January 22 this year, the put option also reached 189 times the market, but investors must pay attention to such a doomsday right is not every time can exist, which requires a very strong time and place to achieve, so the doomsday right can be called a bet, so investors must know that the existence of interests must be accompanied by risks, pay attention to whether they can stand up, it is best not to join at will, bet on this doomsday wheel!