Yunxing ETF: What is an option to understand in one article? Novice must read

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Topic:Non-silver ETF constituent stocks

(Source website: Yunxing ETF)

Definition of options

Period: Future rights: rights

Options, It is an option that stipulates that the buyer has the right to buy or sell the subject matter at a specific price at a specific time after paying a certain amount (referring to the royalty) to the seller, and the seller needs to perform corresponding obligations.

(1) Life example explanation: Aunt Jin buys a house

Aunt Jin's troubles continue. Aunt Jin's son will get married a year later, and the mother-in-law of Aunt Jin's son asked: Only when her daughter has a room, she will marry. In order to prepare for her son’s wedding room, Aunt Kim looks at a house currently priced at 1 million yuan. Auntie is very worried?

Aunt Jin is in a dilemma:

Buy now, worrying about falling house prices in a year; I want to wait and see, worrying about house prices rising again. How should this be done?

At this time, the real estate agency launched this contract:

If Aunt Jin pays a contract fee of 20,000 yuan now, then after 1 year:

Aunt Jin has the right to buy this suite for 1 million yuan, and 20,000 yuan will not be refunded; if the price is less than 1 million, Aunt Jin can not buy it, and 20,000 yuan will not be refunded.

Can this solve Aunt Jin’s worries?

For Aunt Jin

Spend 20,000 yuan to buy the right to buy a house at an agreed price in the future, only the right to buy a house, not a house Obligation

After the expiration, if the house price really rises, I will buy it according to the contract price (earned!). After the expiration, in case the house price drops, the contract fee will be lost at most

The loss is limited and the profit may be unlimited

For real estate developers

I received 20,000 yuan and sold a right. Since I received a contract fee of 20,000 yuan from Aunt Jin, I have only the obligation to sell the house and no right.

After the expiration, the house price really rises, so you must Sell ​​on contract price (lost!). After the expiration, the house price dropped. Since Aunt Jin would not buy a house at a more expensive price in accordance with the contract, she earned a contract fee of 20,000 yuan.

And why would the real estate agent be willing? Do this?

If the house price does not rise, you can earn contract fees

(2) Option contract

The right to buy a house at an agreed price in the future that Aunt Jin spent 20,000 yuan from the real estate agent is essentially an option contract:

Aunt Jin, as the party who pays the contract fee, is called the buyer of the option

The real estate developer, as the party who collects the contract fee, is called the the seller of the option

In order to obtain the right to buy a house at an agreed price in the future, the buyer of the option must pay a contract fee. In the option contract, we call it a premium, which is the same concept.

The 1 million yuan agreed in the purchase contract, which we call the strike price, refers to the transaction price of the contract subject when the option right party exercises the option contract.

For the buyer of the option, that is, the price For the aunt:

According to the content of the contract, at the specified time (expiry date), at the agreed price (exercise price), the seller of the option contract (real estate agency) has the right to buy the specified The number of underlying assets (real estate, stocks, etc.).

Aunt Jin as an optionThe buyer, who has the right to buy, can buy or not, but in order to obtain this right, he must pay royalties.

For the seller of the option, that is, the real estate agent:

Obligation to pay the agreed price at the specified time (expiry date) according to the content of the contract (Exercise price) Sell a specified amount of the underlying securities (real estate, stocks, etc.) to the buyer of the option contract. As the seller of the option, the real estate agent has only the obligation to sell, but no rights.

However, the seller of options can get premium income

(3) European-style options

Assuming that after half a year, Aunt Jin finds out that the house price she wants has risen to 1.2 million yuan. Therefore, Aunt Jin wants to exercise the rights of the option contract and buy real estate now.

However, Aunt Jin was told that the option contract she bought was called a European option. According to the contract, the term of the option contract It is 1 year and can only be executed on the expiry date. There is no way to execute it in advance.

Aunt Jin has no choice but to wait until the expiration date to execute it.

Mother: European options are like buying movie tickets. It says 18:08 on August 8, 2013 on the ticket. Then you can only watch the movie at 18:08 on August 8, 2013. Other times No; it’s not allowed to watch in advance, and it’s no longer valid if you postpone it.

European-style option: refers to an option contract whose option rights can only be exercised on the expiry date of the contract.

American options: In foreign countries, there is also an American option, which refers to an option contract in which option rights can be exercised at any time between the option purchase date and the expiration date.

(4) Summary of the basic concept of options

Options:In the example of Aunt Jin’s house purchase, options refer to the right of the buyer of the option contract according to the contract Contents, buy a specified amount of underlying assets (real estate, stocks, etc.) from the seller of the option contract at the strike price at the prescribed time (expiry date)

The buyer of the option: owns The right to buy can be bought or not, but in order to obtain this right, royalties must be paid.

The seller of the option: Only the obligation to sell, no rights. However, the seller of the option can receive premium income.

European-style option: refers to an option contract whose option rights can only be exercised on the expiry date of the contract.

The classification of options

According to different standards, individual stock options are divided into many types. Below, we will introduce several classifications.

a. According to the rights of option buyers, it is divided into call options and put options.

A call option means that the buyer of the option (the right party) has the right to buy a certain amount of the subject matter from the seller (the obligor) at the agreed price at the agreed time For assets, the buyer enjoys the right to buy.

A put option means that the buyer of the option (the right party) has the right to sell a certain amount of the underlying asset to the seller (the obligor) of the option at an agreed price at an agreed time. The buyer has the right to sell.

For example: Mr. Wang buys a stock call option with an exercise price of 15 yuan. When the contract expires, regardless of the market price of the stock, Mr. Wang Both can buy the corresponding amount of the stock at a price of 15 yuan per share. Of course, if the market price of the stock falls below 15 yuan per share when the contract expires, Mr. Wang can give up the exercise and lose the premium that has been paid.

b. According to the time limit for the option buyer to exercise the option, it is divided into European options and American options

European options means that the option buyer can only Options to be exercised at the future.

American options refer to options that the option buyer can execute on any trading day or expiry date before the option expires.

c. According to the relationship between the exercise price and the market price of the underlying security, it is divided into real-value options, at-value options and out-of-the-box options

Option, also called in-the-money option, refers to the state where the exercise price of a call option is lower than the market price of the underlying security, or the exercise price of a put option is higher than the market price of the underlying security.

Affordable options, also called price-at-equal options, refer to the state where the exercise price of the option is equal to the market price of the underlying security.

Out-of-the-money options, also called out-of-the-money options, refer to the state where the exercise price of a call option is higher than the market price of the underlying security, or the exercise price of a put option is lower than the market price of the underlying security.

For example:For a stock call option with an exercise price of 15 yuan, when the stock market price is 20 yuan, the option is a real-value option; if the stock market price is 10 yuan, the option is an out-of-the-money option; if the stock price is 15 yuan, the option is an at-value option.

Option value

Intrinsic value: immediate exercise, the actual profit of the option buyer (determined and calculable)

Time value: time value is parabolic and accelerates decay (regular , But difficult to determine) Generally, the longer the expiration date, the greater the value

50ETF option contract elements: code, abbreviation

Contract transaction code: 17 digits in total

Contract abbreviation:

The price of options

Take 50ETF to buy September 2500 as an example. ➢The closing price of SSE 50ETF on August 27 was 2.571. ➢At this time, if the option contract is exercised, the right party can get 2.571-2.5=0.071 yuan. ➢Why is the price 0.1040 yuan>0.071 yuan?

Important factors affecting option prices

Transaction example:

50ETF buys August 2650. 50ETF is at current price of 2.65 yuan, expires in August, exercise price is 2.65, call option is at current price of 0.0153 yuan, and it costs 153 yuan to buy one lot.

What is the SSE 50?

The Shanghai Stock Exchange 50 Index is an index compiled by the Shanghai Stock Exchange to select 50 blue-chip large-cap stocks, reflecting the overall ups and downs. The index is abbreviated as SSE 50, code 510050, base date is December 31, 2003, base point is 1000 points. It was officially released on January 2, 2004 and listed and traded on the Shanghai Stock Exchange.

What is 50ETF?

ETF is the English abbreviation of Exchange Traded Funds. It is called "trading open-end index securities investment fund" in Chinese. It is also known as "Exchange Traded Fund." Index funds.

What is a 50ETF option?

Stock option contracts are uniformly formulated for the Shanghai Stock Exchange, which stipulates that the buyer has the right to buy or sell agreed stocks or track stock indexes at a specific time in the future, trading open-end index funds (ETF), etc. Standardized contract for the subject matter. The SSE 50ETF option is an option contract that uses 50ETF as the underlying asset for trading.

List of SSE 50 Index Constituent Stocks

The SSE 50 Index contains the largest, liquid, and most representative 50 stocks on the Shanghai Stock Exchange. The constituent stocks are composed of the SSE 180 sample space The top 50 stocks based on the comprehensive ranking of stocks based on total market value and transaction value are composed of the top three stocks currently accounting for Ping An of China (601318.SH), China Merchants Bank (600036.SH), and China Minsheng Bank (600016). .SH). The constituent stocks of the SSE 50 Index are a subset of the constituent stocks of the Shanghai and Shenzhen 300.

The SSE 50's equity scale distribution center is obviously on the high side, the total market value is almost all above 200 billion yuan, and the free float shares exceed 50 billion yuan. Index weights are highly concentrated in the financial sector, and non-bank financial and banking weights total more than 65%, which can basically be used as a representative of the financial sector index.

SSE 50ETF Option Broker Account Opening Conditions

There is no threshold to open an account for Yunxing ETF.

We have adopted the current popular Internet sharing economy model. We have opened a trading account in a securities/futures company and used Internet technology to build advanced warehouse splitting software. The system is shared with the majority of investors. Investors do not need to pay any upfront fees, do not need a capital threshold of 500,000, and do not need to take an exam, they can participate in 50ETF option transactions with a zero threshold. At the same time, we use our accumulated rich experience in option trading to train and instruct customers, so that customers can be more quickly familiar with option knowledge and improve option trading skills.

A picture to understand stock options

Option understanding comics

[Source website: Win Hing ETF www.50etf520.com]

Win Hing ETF: SSE 50ETF Option_ CSI 300 ETF Option_ Account Opening Unconditional_ Trading Low handling fee

Label group:[stock] [investment] [premium] [real estate] [stock option] [individual stock options] [option contract] [etf options] [option time value] [intrinsic value of options

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