How to buy a put option, how to understand selling a put option

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.

The holder of a put option has the right to sell a certain amount** at the agreed price within an agreed period. The buyer of a put option. The buyer of the put option is expected to appear in the near future, so that the pre-buyer of the put option will buy back the corresponding ** from the market at a low price in the future and sell it to the seller of the option at the agreed price, earning the difference between the agreed price and the market price.

If the judgment is wrong, the right will be waived and the option premium will be lost.

How to buy a put option.

In the case of a call option, if only the option position is changed and the investor changes to the buyer of the put option, the profit and loss situation after 3 months may be as follows. Within 3 months, the **** fell to the yuan shares, and the difference between the agreement price is yuan, so the option can be exercised, but the profit and loss falls below the yuan shares within 3 months, the option can be exercised, and there is a surplus after deducting the option premium. And the lower the market falls, the greater the profit.

Put options mean that the market will be **. Therefore, selling the put option in your hand is also bullish, and the double negative means yes. It is generally expected that the market will not fall sharply in the future, or it will be mildly bullish, or it will be suitable to sell put options during the consolidation phase.

Put options, also known as put options, put options, ** options, put options, put options, put options, put options, extended sell options or knock-out options: refers to the right of the purchaser of the option to sell a certain amount of the underlying asset according to the execution ** during the validity period of the option contract.

** The difference between bonds and bonds is as follows:

1. The issuer is different, as a means of financing, whether it is the state, local public bodies or enterprises, can issue bonds, and ** can only be issued by joint-stock enterprises;

2. The stability of income is different, from the perspective of income, before the purchase of bonds, the interest rate has been set, and you can get a fixed interest at maturity, regardless of whether the company issuing the bond is profitable or not. **Generally, the dividend yield is not fixed before the purchase, and the dividend income changes with the change in the profitability of the joint-stock company.

3. The ability to protect the principal is different, from the perspective of principal, the bond can be the first principal at maturity, that is to say, even the principal and interest can be obtained, just like money lending. **There is no expiration date. Once the principal is given to the company, it can no longer be recovered, and as long as the company exists, it will always be at the disposal of the company.

Once the company goes bankrupt, it depends on the liquidation of the company's remaining assets, and even the principal will be wiped out, especially for minority shareholders.

Current income is the actual income, and the expected income is the current income. Before the reform of China's economic system, there was a single source of income for residents, the wages of workers and workers remained unchanged for many years, and the expected income was basically unchanged. With the reform of the economic system, the frequency of income growth has accelerated, the number of income channels has increased, and the expected income in terms of concept and form has also changed.

When planning current and future consumption needs and expenditures, individual residents and households should not only base their current income, but also anticipate the amount of income they may receive in the future.

In ** options trading, selling open is the way for the seller to reduce the position is equal to selling to open a position, which refers to the trading method taken by the seller investor to sell the put contract for the future ** trend bearish. After selling and opening a position, the margin is frozen, and **** chooses to buy to close the position, so as to obtain the difference.

To put it simply, it is to sell, and then lower the price, so as to earn the difference and obtain profits.

Fundamentals of Selling Put Options:

When a put option is sold, the seller receives a certain amount of premium, and when the buyer exercises the option, the seller has an obligation to perform the contract.

If the put option is abandoned at expiration, the seller's gain is the full premium.

The motivation for selling put options is that investors expect the market to be less probable. When the investor expects the underlying ** not to fall (** or narrow range**), the volatility or ** to fall, it is more appropriate to sell the put option.

When the underlying ******, the return from selling the put option increases with the ****** of the underlying option, and the maximum gain is the full premium. When the underlying ******, selling a put option will incur the same loss as the underlying contract, but the premium income can partially compensate for the loss incurred.

A put option is when the purchaser pays a premium and obtains the right to sell a certain amount of a particular commodity to the option holder for a specific price. Put options tend to anticipate that the market will be.

1. Traders can ** put options related to the ** contract they are about to sell or have bought, once the commodity ** falls, they can exercise the put option, sell ** contract at a higher execution, and then close the contract at a low price ** and make a profit, and there is a surplus after making up for the premium paid, which can make up for the loss caused by the **low price** commodity; Or sell the option** directly to obtain premium income, which can play a role in value preservation.

2. If the commodity does not fall but is gone, the trader can give up the exercise of the option, and the loss of the premium can be compensated by the income of the commodity or asset. Compared with hedging by selling contracts directly in the market, this trading method is less risky and flexible. For traders, put options are actually equivalent to establishing a minimum ask price, which locks in the risk and ensures that the trader can get the benefits brought by the trader.

Extended Material:1 Buy a put option to gain on the spread. Through the analysis of market changes, the buyer of the put option determines that the underlying asset is more likely to be larger, and he will choose the put option and pay a certain amount of premium for it.

Once the premium** is paid, the position can be closed for profit. However, if the buyer of the put option does not accurately judge the trend of the change of the underlying asset, if the underlying asset, the right will not be enforced, and the maximum loss he faces is only the premium paid.

2 Buy a put option for leverage. The more you expect the underlying to **will**, the more you can buy out-of-the-money put options, because the premium cost is low at this time, and you can use this leverage for options trading activities.

3. Buy a put option to protect a long position on an existing underlying. The investor has bought the underlying asset, and in order to prevent ****, he can buy a put option to offset the risk of ****. If ****, although the purchased subject matter will have a loss, the bought put option will have a profit, which is a kind of protection for the purchased subject matter; If ****, the maximum loss of the option is only the premium, and the purchased underlying will continue to benefit.

4 Buy a put option to protect the book profit. Investors with a holding cost of $50 and a market of $80 can choose to buy a put option to lock in book profits (executing a cost-to-premium) strategy. If the market continues, the put option can be sold to close the position, or expire to be voided.

After the investor puts the option, he wants to look at the stock price, so it is called a put option.

The put option is sold at a fixed value, and in fact does not require the option holder to actually hold it, which can be understood as that when the stock price is **, the option holder is ready to exercise the option at a low price, and then sells at a higher than the stock price, so that the holder obtains the spread income.

If the stock price is higher, the stock price is greater than the strike, and the option holder will not exercise it, because selling at a lower price than the stock price will be a loss. If it is not exercised, there will be no income and no costs, the value on the expiration date will be 0, and the option will expire after the expiration date.

If the stock price is lower than the strike, the holder will choose to exercise the option. The income at the time of execution is the execution**, and the expenditure at the time of execution is the stock priceNet Execution Income = Execution** - Share Price.

So, what ifShare price**, Stock Price" executed**,**Expiration value of the put option = 0；IfShare price**, Stock Price" executed**,**Expiration Value of Put = Strike ** - Stock Price

If it is expressed by the formula: ** Expiration value of put option = max (Exercise ** - share price, 0).

The investor pays the premium (option) at the beginning of the put option, so from the perspective of the entire holding period of the option, the put option is the oneNet P&L = Expiration Value - Options**.

In recent days, a question "What is a put option?" The question has become a hot topic, and I will give you my opinion. First, let's understand what options are.

When is the right time to put a put? Just like the name, it means that when you think the market will be **, you can profit by being bearish. So what's going on?

Let me share my thoughts with you.

One. OptionsFirst of all, let's first understand what options are. Options are divided into put options and call options, ** options, which will give you the right to sell or ** for a period of time, and you need to deduct the option premium.

Options are also a derivative trading financial product. <>

Two. Put OptionsSo, what is a put option? Put option, that is, you think the market will**, so you ** put option, if it falls more than the premium, then you earn.

For example, if you put 100 shares, the price of each share is $100 for a period of 3 months. Then, within 3 months, you can exercise the option and sell the option at any time. However, if you want to make a profit, you have to go through the premium after he has exceeded your premium, and then you can exercise the option, and then you can take the difference from it.

Three. When is it appropriate and when is it appropriate** for put options? Just like the name, it means that when you think the market will be **, you can profit by being bearish. <

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