How is the opening price of an options contract trade generated?

Similar to trading, the opening price of an options contract is the first trade of the contract on the day. The opening price is generated through the call auction method, and if the opening price cannot be generated, it will be generated by continuous auction.

How is the ** price of an option contract transaction generated?

The ** price of the option contract is the last transaction of the contract on the same day**, and if there is no transaction on the same day, the ** price of the previous trading day is the ** price of the current day. If there is no transaction on the first day of listing, the opening reference price announced by the Shanghai Stock Exchange shall be used as the ** price of the day.

How is the settlement of an options contract calculated**?

The SSE publishes the settlement of the option contract to the market after each trading day, which is used as the benchmark for calculating the daily end-of-day maintenance margin, the next trading day's opening margin, and the price limit** of the option contract.

In principle, the settlement of an option contract is the execution of the call auction on the day of the contract. However, if there is no transaction in the call auction on the same day, or the transaction is obviously unreasonable, then the SSE will consider the multiple influencing factors of the option transaction and calculate the settlement of the contract separately.

That is, the implied volatility of an option contract with the same underlying issue, the same expiration date, and other strike prices of the same type is calculated based on the implied volatility of the contract, and the settlement price of the contract is calculated accordingly.

In addition, if the last trading day of an option contract is a real-value contract, the SSE will calculate the settlement of the contract based on the day **** of the underlying contract and the exercise of the contract**; If the last trading day of an option contract is an out-of-the-money or at-the-money contract, the settlement** is 0.

On the first day of listing of an option contract, the opening reference price published by the Shanghai Stock Exchange will be used as the pre-contract settlement**.

If the subject of the contract is ex-rights and ex-dividends, the pre-contract settlement** will be adjusted according to the following formula:

Settlement before new contract** = settlement before original contract** (original contract unit, new contract unit).

On the ex-dividend date, the adjusted pre-contract settlement price is used as the basis for calculating the price limit and margin collection.

The ** of an option is made up of intrinsic value and time value. The right holder of the option (the buyer) pays the premium to the obligated party of the option (the seller) to obtain the rights conferred by the option contract.

Intrinsic value: It is determined by the relationship between the exercise of the option contract ** and the underlying market of the option, which means that the option buyer can sell the profit portion of the underlying ** on better terms than the existing market**.

Intrinsic value can only be positive or zero.

Only in-the-money options have intrinsic value, at-the-money options, and out-of-the-money options.

None have intrinsic value. The intrinsic value of an in-the-money call option is equal to the current underlying ****.

Subtract the option strike price, and the in-the-money put option.

The strike price is equal to the option strike price minus the underlying ****.

Time value: refers to the amount that the buyer of the option is willing to pay for the option to buy the option with the extension of time, and the change of the underlying ** of the relevant contract may make the option increase in value, which is the excess of the option premium.

out of the intrinsic value part.

The longer the expiration date of the option, the more likely it is for the buyer of the option to make a profit; For the seller of an option, the more risk he has to bear, the more premium he asks to sell the option, and the more the buyer is willing to pay more to have more profit opportunities. So generally speaking, the longer the option has remaining in force, the greater its time value.

Options are priced through market-matched transactions, and the more people buy, the more they sell, the more they sell. The vast majority of investors will decide whether to buy or sell according to the changes in the trend of the SSE 50 ETF.

When you first participate in options trading, it is easy to be confused by the dense contracts on the client, and the most basic elements of choosing an option contract areThree: direction, amplitude, and time

Look at the direction, bullish or bearish。Bulls can buy call option contracts, and bearish can buy put option contracts, and the specific choice of which operation depends on the amplitude;

Second, look at the amplitude, how much is bullish and how much is bearish。For example, a bullish rise often corresponds to buying an out-of-the-money call option contract, and a small rise chooses an at-the-money or in-the-money call option contract. A big drop often corresponds to buying an out-of-the-money put option contract, and a small drop chooses an at-the-money or in-the-money put option contract;

Three look at the time, do swing, intraday, or trend trading, and make decisions based on your own judgment of **.

1.The buyer obtains the right to execute a certain amount of the underlying of the contract by paying a certain premium to purchase the call option contract, and can also choose to close the contract before the contract expires, so as to earn the premium difference.

2.The buyer obtains the right to sell the underlying asset in his hand by paying a certain premium to purchase the put option contract, and can also buy and sell the contract before the contract expires.

3.To sell a contract as a seller, it is necessary to pay a certain margin, and the buyer must fulfill the obligation to execute the subject matter of the **sell contract or the subject matter of the ** contract when the buyer expires to exercise the right.

The rights and obligations of the buyer and the seller of an option contract are asymmetrical, with the buyer having rights and the seller only obligation. In addition, the profit and loss are also non-linear, the buyer's income of the option is the market price minus the premium and the strike price, and the seller's loss is the market price minus the premium; In the case of a put option, the buyer loses the premium and the seller earns the premium. Option**, where the buyer of the call option loses the premium and the seller earns the premium; The buyer's profit for a put option is the market price minus the premium and strike price, and the seller's loss is deducted from the market price.

Caishun Options: How to Trade Options Contracts? Many options investors know that call options are a trading method with limited losses and unlimited profits, but option contracts are trading contracts with financial derivatives as the underlying asset, which are divided into call options (call options) contracts and put options (put options) contracts.

**How to manage options contracts?

How do I ** an option contract? How do I ** an option contract? In the case of a contract, the premise should be decided according to the actual situation, what the market is in, and then adjusted according to the market.

For novice options, it is easier to buy 50ETF options contracts to make orders, and in this process, if you can grasp the steps of trading, it is easier to help you make money.

So what are the steps to buy an option contract? The steps of buying are relatively simple, and there are only a few simple steps for the buyer to judge to choose and then close the position: [judging the direction] [selecting the contract] [opening a position] [selling to close the position].

However, the main option contract will also change with the market, and the main option contract is infinitely close to the exercise price, with high open interest and high trading activity.

**How to manage options contracts? After the option, you have to pay attention to it. If it is more advantageous to sell to close the position, then sell to close the position.

If the exercise is more favorable, the option will be exercised, and the exercise also requires the option contract to be in the state of real value before the option can be conditionally applied for exercise. 50ETF options trading is T+0, both buyers and sellers can close the contract in their hands during the trading hours and carry out a take-profit and stop-loss.

The cost (insurance premium) to pay to buy an option.

Options trading is different from the trading form of **, bonds and other valuable **, **and the trading form of selling options is different, the following will take you to understand the process of options trading!

Options trading is a type of financial derivatives trading, and its process is as follows:

1.Select Trading Platform:

Select Option Type:Investors need to select the type of option, including call option and bearish option. A call option is a call option that allows an investor to purchase the underlying asset at a specific ** expiration date; A put option is a put option that allows an investor to sell the underlying asset at a specific price on the expiration date.

3.Select the underlying asset:Investors need to choose the underlying assets, such as **, commodities, foreign exchange, etc.

4.Select the expiration date:Investors need to select the option expiration date, which is the expiration date of the option contract.

5.Select Execute:Investors need to choose to execute, i.e. they can sell or sell of the underlying asset on the expiration date.

6.Order:Investors need to place an order to buy options contracts, including call or put options.

7.Transaction Settlement:On the expiration date, the option contract is automatically executed.

If the option contract is profitable, the investor can choose to exercise the option right or sell the option contract. If the option contract is in the red, the investor can choose to forfeit the option contract.

1. Judgment**. Investors first need to judge whether the option should be ** or **, and judge the magnitude and speed of the rise and fall;

2. Select a strategy. If the investor judges that it will rise in the future, then he chooses to call the option, and if he judges **, he chooses the put option;

3. Select the strike price. There are three value states: real, flat and imaginary, and investors need to choose according to the judgment situation;

4. Select a deadline. After selecting the above conditions, investors need to select the term of the contract;

5. Confirmed**. Investors should be determined according to the risk and their own capital situation**;

6. Dynamic management. Investors need to continue to pay attention to the trend, and then choose to close positions, exercise, increase positions, reduce positions and other operations according to the situation.

Tip 1: Know how to analyze trends

Although choosing a bullish and put is as simple as making a multiple-choice question, because the trend of the market may change at any time and cannot be artificially controlled, investors need to conduct a specific analysis of the changes in the assets they want to trade, and study some of the main factors that will affect the change of the trend of the assets, which is very effective in improving the accuracy of trading judgment.

Tip 2: Screen trading opportunities

Sometimes the profit and loss results of options trading are in that instant, and the results of the previous second order transaction and the next second of the transaction result may be different, so the choice of trading timing is very important, although options trading can be carried out 24 hours a day, investors must also find a favorable time to place an order.

For options trading, there are a total of six buy and sell orders: ** open and sell to close, sell to open and ** to close, covered to open and cover to close.

Mainly take ** opening a position as an example

1.Enter the contract code to be traded, such as 10005647, which indicates a call option with a strike price of RMB 50 ETF, expiring in August 2023.

3.After entering, if you want to open a position, select "**" first;

4.Then select "**Open Penetration Distribution";

5.If you want to place a limit order, you should first enter the order method "Limit the core price".", and then enter the order**, such as yuan; If you want to place a market order, you only need to enter the order method "market price", and you do not need to enter the order** (the system automatically displays the counterparty price);

6.Select the number of orders, such as 1 or 10 or 20 orders, and orders can also be placed if they are not integers;

7.Finally, click Place Order to complete the entire order operation.

Finally, it is to exercise or close the position.

The SSE 50 ETF options currently launched by the SSE are European-style options, and can only be exercised on the expiration date (the fourth Wednesday of the option expiration month).

Investors are on the left side of the trading interface on the day of the expiration date"Other Mandates"In the first column, select "Option Exercise".Select the contract that needs to be exercised, enter the number of options to be exercised, and click OK to complete the exercise.

If you choose to close the position, you can directly click the option button to sell to close the position, and the contract can be closed and the premium will be released after the position is closed.

** of an option refers to the premium of the optionIt can also be understood as an option agreed upon by both parties at the time of the transaction. The option buyer pays a balancing premium to the option seller for the right to buy or sell the underlying asset on a specific **, while the option seller receives a premium that commits to perform the contract on the option expiration date.

Options are determined by factors such as market supply and demand and changes in the market, and are usually affected by the following factors:

Underlying asset**: The underlying asset ** is an important factor of the option**, which determines whether the option buyer and seller can make a profit when the option reaches the call date, so the change of the underlying asset ** has a great impact on the option**.

Strike price: Strike price is another important factor in options**, which affects the profit and loss of the option buyer and seller at the expiration date of the option. In general, the higher the strike price, the lower the value of the call option, the higher the value of the put option, and vice versa.

Expiration Date: Expiration date is another important factor in an option** that affects the time value of the option. The farther the option expires, the higher the value of the option is usually because the option holder has access to the underlying asset for a longer period of time.

Volatility: Volatility is the degree of volatility of the underlying asset**, which has a very large impact on options**. In general, the higher the volatility, the higher the value of the option.

In conclusion, options** are determined by a combination of factors, and investors need to carefully consider these factors when trading options in order to better understand the changes and risks of options**.