How put and call options work

Caishun options: Put options.

And how do call options work? Both bullish and bearish are from the perspective of options buyers. If ****, then the direction of the corresponding call option buyer is also judged correctly, and the buyer's income of the call option will also increase; What about put options?

A bearish strategy is the expected underlying.

When using a trading strategy, how do you trade call and put options? How are options bullish and put?

How to trade call and put options? When the investor ** the underlying ** will**, you can use the bullish strategy. The basic concept behind call option strategies is that if the trader is right about the underlying options, then those trades will yield gains.

When we judge that the ** of the corresponding product will decline in the future, we will follow the put option of the corresponding product at the current **, so that when the product is really **, we can sell according to **, so as to make a profit.

How are options bullish and put? A put option gives the buyer a long position.

A right, but not an obligation, to sell a certain amount (contract size) of the underlying asset within a certain period of time (expiration date) or before a date (expiration date) according to the ** (strike price) specified in the contract. Second, the party who sells the call option receives a premium and bears unlimited risk (the risk is uncontrollable).

The put side pays a premium, but only takes a limited amount of risk. If **** cannot exercise the right, the loss is only the premium.

Put option contract, if the underlying contract, the higher the value of the option contract, the investor can make a profit. Follow the exchanges.

The published options trading rules, option contract refers to a standardized contract formulated by the exchange, which stipulates that the buyer has the right to sell the agreed subject matter at a specific time in the future.

At present, most investors choose to trade options, which are divided into call options and put options. **Trading options is convenient, simple and rewarding. Trade in just a few simple steps:

1.Select Direction:

Call option: If the investor believes that the trade will be higher than the current price when the trade is closed**, he or she chooses to go call.

In layman's terms, investors think that something will rise, so they buy a call option, and then sell it after it rises, earning a profit from the price difference.

Put option: If the investor believes that the trade will be lower** when the trade is closed, he or she chooses to put it.

Investors think that something will fall, so they buy put options, and then sell them after it falls, making a profit on the difference.

2 Select the amount to invest. Options trading also has high returns and high risks, so choose the right amount of investment for you.

3.Confirm the transaction.

A call option is a contract that gives the contract holder, the buyer, the right to buy a specific amount of a specific counterparty from the seller as agreed.

A put option is the symmetry of a call option, and it is one of the types of options trading, which is the right to sell a certain price ** at a specific ** and quantity ** in a certain day or a certain period of time in the future.

If you are buying 50ETF options, you can apply directly from the company for option account trading, if it is an option, you need to sign a relevant contract with the institution for offline trading, the former is an on-exchange option, and the latter is an over-the-counter option, which can be bought up and down on **.

Generally speaking, investors are willing to buy put options only when there is a trend in the market. Because, during the validity period of the put option, only when the **** drops to a certain extent, the buyer can exercise the option to obtain a profit.

A call option is an option that gives the holder the right to buy the underlying asset on or before the expiration date for a fixed amount. The characteristic of the rights granted by it is "purchase". Therefore, it can also be referred to as a "call option", "** option" or "call option".

A put option refers to the right of the holder of the option to fix the underlying asset at or before the expiration of a certain date. Put options are also called put options or sell options, that is, the person who buys the option can sell a certain number of contract rights at a certain ** in accordance with the agreed content within the agreed time, and does not have to bear the obligation to sell.

If you think that in the future, you can **call option, the buyer of the call option has the right to sell a certain commodity in the future, and the buyer of the put option has the right to sell a commodity in the future with the ** you agreed, the key is to see the future, whether you have the right to sell **, the right to sell, the right to sell the call option, and the right to sell the put option. If you don't understand, feel free to continue asking questions.

Call options are also known as ** options, and put options are also known as sell options.

Supplementary information: Options can be divided into call options and put options according to different classification criteria, among which call options are also known as ** options, that is, within the validity period specified in the agreement, the agreement holder has the right to purchase the contract according to the specified ** and quantity; Put option is also known as put option, that is, the person who buys the option can sell a certain number of contracts at a certain amount of ** in accordance with the provisions of the contract in accordance with the contract time, but does not bear the obligation to sell.

Extended Information: Options, like **, are a type of contract.

It is the right of the buyer of an option to buy or sell an asset (or **) on a specific date or at any time before that date by agreement after paying a certain fee to the seller.

Conversely, the other party to the option contract, the seller. When the buyer decides to exercise his rights, he is obliged to sell or buy the corresponding asset (or**).

In this definition, it can be seen that the option buyer has the right to sell an asset at the agreed ****.

This is what we call call and put options.

That is, among the options, call options and put options.

1. Definition of call option:

Call options, also known as "call options". It means that the buyer has the right to agree with the seller of the option at the specified period (such as the expiration date) the amount of the underlying (such as ** or ETF) according to the content of the contract, at a specified period (such as the expiration date);

The seller of a call option is obligated to sell a specified amount of the underlying at the strike price when the buyer requests to be exercised.

2. Definition of Put Option:

Put options are also known as "put options". It means that the buyer has the right to sell a specified amount of the underlying (such as ** or ETF) to the option seller at the agreed ** (exercise price) within a specified period of time (such as the expiration date) according to the agreement;

The seller of a put option is obligated to specify the number of the underlying at the strike price when the buyer requests exercise. The buyer has the option to sell.

This question is not difficult and can give you a reference!

1. Call option

Call options are also known as buy options, call options, call options, extended call options, or "knock-in." A call option refers to the right of the holder of the agreement to purchase ** and quantity according to the specified ** and quantity during the validity period specified in the agreement.

A call option is the right to give the holder the right to buy an asset (i.e., foreign exchange, commodity, interest rate, etc.) at a fixed rate of time. The value of the call option depends on the value of the underlying on the expiration date.

If the **** price on the expiration date is higher than the strike **, then the call option is in real value, and the holder will exercise the option and get the profit; If the expiration date is lower than the strike, then the call option is out of money, the holder will not exercise the option, and the value of the call option is 0.

2. Put option

A put option means that the person who buys the option has the right to sell a certain amount of goods at a certain amount of ** in accordance with the provisions of the contract within the contract time of owning the option. Put options are also known as put options, put options, ** options, put options, put options, put options, extended sell options, or knock-out options.

The so-called put option means that the buyer of the option has the right to sell a specific quantity of the relevant commodity ** contract according to a specific finalization within the specified validity period, but does not have the obligation to sell at the same time.

Call and put options are common types of options contracts in the financial market, and they provide different options when traders have different judgments about the future trend of the underlying asset**.

A call option is a financial derivative that gives the holder the right to buy the underlying asset at a specific time in the future (exercised). When the option expires, if the underlying asset **is higher than the exercise**, then the person holding the call option can choose to exercise the option to ** the underlying asset below the market ** and can sell it immediately for a profit.

A put option is another type of financial derivative that gives the holder the right to sell the underlying asset at a specific time in the future. When the option expires, if the underlying asset is less than the exercise, then the person holding the put option can choose to exercise the option to sell the underlying asset above the market and can immediately make a profit.

It can be understood that a call option is the right to choose when the underlying asset is optimistic about the future, and a put option is the right to choose when the underlying asset is optimistic about the future. Traders can choose to buy call options or put options according to their judgment of market movements, so as to obtain corresponding returns.

Put optionsThere are two kinds of situations, if the buyer corresponds to the put contract, the put is bearish, and the contract trend can be profitable.

If the seller corresponds to the subscription contract, selling the subscription is equal to bearishness, and the selling contract trend can only make a profit, and the buyer is playing with each otheropposites

Put options are divided into buyers and sellers

1. Buyer:Basically 90% of the players are buyers, call options, put options, straddle hedging strategies, etc.

Buyer = High Yield = High Risk.

2. Seller: The principal is less than 50,000 don't think about it, the general seller's funds are between 100,000 and 300,000, and the seller's money will always be how much of your investment principal.

Seller = Stable Profit = Low Yield

This is the SSE 50

The operation process of option put is very simple, and you can master it once you have basic operations.

The real most difficult thing about SSE 50 options is the judgment of the ** trend, such as tomorrow's ** trend judgment, 10 people will have 10 kinds of analysis results As for who is closer to the more accurate, the spell is your reverse thinking.

What everyone looks up to must be wrong.

Usually the options we trade are on-exchange options, that is, options contracts listed on the exchange, and its underlying assets are usually the ** contracts of the exchange. In addition to specifying the underlying asset, a standard options contract will also specify the specific time and at what time to trade. In options trading, there is a word called "put option", and put option is an option to sell, which means that the buyer of the option believes that the future trend is bearish.

When the market direction is clearer, traders can get a certain amount of income by simply buying and selling put options, so how to put options? How to invest put options correctly?

A put option (or "put option") is a contract that gives the buyer of the option the right, but not the obligation, to predetermined or short a specific amount of the underlying within a specific time frame. Call options, as the name suggests, are the price of the option can increase in value, and the difference can be profited through the call option contract.

On the other hand, a put option is the opposite of a bull, which does not believe that it will rise, and makes a profit on the difference through the put option contract. When an investor expects the market to be fast, they can put an option. Put options can avoid expanding losses due to ****, and at the same time use less money to obtain greater returns, after all, options can be bullish or bearish, so there is still a lot of room for operation, and therefore won the favor of investors.

How to invest put options correctly?

Precautions for put option investment: First of all, it is necessary to understand the basic concepts of options, including the type of option, the ** of the option, the expiration date of the option, etc.; Secondly, it is necessary to understand the risks of options, including the volatility of options, the time value of options, the exercise of options, etc.; **Put options, a premium is paid. After all, put options have the possibility of limited losses and unlimited profits.

In order to obtain such a right, the investor who buys the put option needs to pay a certain premium.

Options Knowledge Expansion:

The main reason why investors like to do put option strategies is because options can be shorted and put, assisting ** to achieve the hedging effect. The first bearish strategy that most traders learn is how to short sell. If the ****** is lower than your short sale**, this is profitable.