Source Baidu: Caishun Option
How many varieties of domestic options are there?
At present, SSE 50ETF options, CSI 300ETF options (Shanghai), CSI 300ETF options (Shenzhen) and CSI 300 stock index options are listed on three major exchanges (Shanghai Stock Exchange, Shenzhen Stock Exchange and CICC), and there are 20 options with commodity futures as the target, namely, cotton options, sugar options, rapeseed meal options, PTA options, methanol options and thermal coal options.
What does this option do?
Options are agreements about future transactions. Buying a call option is equivalent to paying for the right to buy the subject matter at an agreed price on or before an agreed date in the future. The buyer can choose not to buy. But if the buyer wants to buy, the seller has the obligation to sell. The nonlinear characteristics of option risk and return theoretically ensure that the return of option purchase is infinite and the risk is relatively limited. Although the buyer who makes the option has a low winning rate, it is an indisputable fact that each loss is limited to the option fee.
Compared with the hedging method in which futures lock in risk returns at the same time, the risk management function of options is more flexible. By paying less royalties, investors can buy put options and combine with stock positions to build a wonderful portfolio that "locks down downside risks while retaining potential returns". If there are options and the market expects a bull market, then there will be a lot of money to do more options. These capitals are not the same as long futures. If they subscribe for more options, the short party can't let their options explode.