Index option refers to the option based on the stock price index. When the option expires, the price difference of the stock index will be settled in cash.

Interest rate option

Interest rate option refers to the right of the buyer to buy or sell interest rate instruments with a certain denomination at a certain interest rate (price) within the validity period or expiration date of the contract after paying the option fee. Interest rate option contracts usually take interest rate instruments such as short-term, medium-term and long-term government bonds, Eurodollar bonds and negotiable certificates of deposit with large denominations as the subject matter.

Gold option

Option is the price agreed by the buyer and the seller in the future, and it has the right but no obligation to buy a certain number of targets. If the price trend is favorable to both buyers and sellers of options, they will exercise their rights and make profits. If the price trend is unfavorable to it, it will give up the right to buy, and the loss will only be the purchase at that time.

Interest option

Interest option determines the upper or lower limit of interest rate, and the buyer of the option obtains the right to ask the seller to pay the spread when the market interest rate is higher or lower than the set level by paying a certain option fee. At present, the popular interest rate options in the market are: upper limit, lower limit and collar.

Currency option

Currency option refers to the right agreed by both parties in the contract to buy (or sell) a certain amount of a currency in another currency at a pre-agreed exchange rate on the agreed date (or at any time before the expiration of the agreed date).

Physical options

Spot option is a trading option, mainly based on the spot of the exchange, and the spot option is limited to the futures exchange.

Futures option

The right to buy or sell a certain number of futures and contracts at a certain price at a certain time in the future.

stock options trading

Stock option trading refers to the right of buyers and sellers to buy and sell a certain number of stocks at an agreed price within a certain period of time at the expense of paying a certain option fee through negotiation. After the expiration of the time limit, the contractual obligations will automatically terminate. Stock option trading has a long history in the United States, and it was carried out on a small scale in new york in the 1920s. But the mature option trading was in the 1970s. 1The establishment of Chicago Board Options Exchange on April 26th, 973 created conditions for the development of stock options trading. At the beginning, the exchange only made call options, and in June 1977, put options were added. 1978 The London Stock Exchange also started trading stock options.

Types and trading principles of stock options

Stock option trading is also divided into three basic forms: call option, put option and double option.

(1) Stock call option.

That is, the purchaser can buy a certain number of shares at the agreed price within the specified period (Chicago Board Options Exchange stipulates that a contract is 1000 shares and London Stock Exchange stipulates that it is1000 shares). When the stock price rises, he can buy at the low price stipulated in the contract and sell at the high price in the market, thus making a profit; On the other hand, if the share price falls below the contract price, it will bear the loss. Because the buyer's profit depends on the degree of price increase, it is called a call option.

For example, the buyer of an option signs a six-month contract with the seller to buy and sell 65,438+000 shares of a company. The par value of the shares is $65,438+00, and each contract is 65,438+000 shares. The option fee is1* * 65,438+000 USD. I agree that the price is $ 1 1.

If the share price rises to $65,438 +03.5 per share during the contract period, the buyer has two options:

First, exercise option, that is, buy 100 shares at1USD, pay1USD, and then sell the 100 shares at 13.5 USD per share, with income of/

Second, transfer options. If the option fee rises when the stock price rises, for example, to $3 per share, then the buyer can sell the call option with a profit of $300, a net profit of $200 and a yield of up to 200%. You can get great benefits at a small cost, which is the charm of options.

Of course, if the stock market trend is contrary to the buyer's forecast, then the loss will be borne by the buyer. At this time, he can also have two choices:

First, if the option is not executed, even if the option expires automatically, the buyer will lose the option fee of $65,438+000;

Second, the option is sold at a reduced price, that is, the buyer loses confidence in the market rise during the validity period of the contract, so he sells the option at a reduced price halfway, and sells it at $0.50 per share, with a loss of $50.

(2) Stock put option. It refers to the sale of a certain number of shares at an agreed price within a specified time. When the stock price falls, the option buyer sells the option to the seller at the contract price, and then buys it at a low price on the exchange, thus making a profit. Because the buyer's profit at this time depends on the degree of stock price decline, it is called put option.

For example, the option buyer signs a six-month contract with the seller, and the agreed price is 14 yuan per share, the number of shares sold is 100, the option fee is 1.5 USD * * 150 USD per share, and the par value of the shares is 15 USD per share. In this transaction, the buyer has two choices:

First, exercise options. If the share price really drops to $65,438+02 per share within the specified period, the buyer will exercise the option, that is, sell 65,438+000 shares to the seller at the agreed price and charge $65,438+0400, and then buy 65,438+000 shares at the market price of the transaction, paying $65,438+0200, deducting.

Second, sell options. When the stock price falls and the put option premium rises, if it rises to $3,500 per share, the buyer sells the option, earning $350 and making a net profit of $200. On the other hand, if the stock price moves contrary to the forecast, the buyer will suffer losses, and the degree of loss is the option fee he paid.

(3) Double stock options. Option buyers have the right to buy and sell, and buying and selling depends on the price trend. Because this kind of transaction will be profitable, the option fee will be higher than the call or put option.

Variable relationship in stock option market

The variables in the stock option market include: the agreed price of buying and selling stocks, the duration and the level of option fees.

The agreed price is closely related to the spot spread: the greater the positive spread, the lower the option premium; The greater the negative difference, the higher the option fee. The term is also related to the level of option premium. The longer the term, the higher the option fee.

Let's explain the relationship between a company's annual call options. The spot price of the company in March 1 is $3.

Relationship between call option variables

Call option fee

The agreement price expires in May, August165438+1October.

$2.6

$2.8

$3.0

$3.2

$3.50

As can be seen from the above table, the agreed price has risen from $2.6 to $3.5. The higher it is, the greater the positive difference between it and the spot price. The greater the positive difference, the smaller the buyer's profit, so the option fee will be lower. On the contrary, the greater the negative difference, the richer the profit and the higher the option fee. This is obvious from the above example. In addition, as can be seen from the table, the longer the term, the greater the hope of profit, so the higher the option fee. Of course, the fundamental factor affecting the option premium is the relationship between market supply and demand, which in turn depends on three specific factors:

(1) Market conditions. When the stock market rises, more people buy call options, so option sellers will increase the call option fees. When the stock market falls, more people buy put options, and the put option fee will also increase.

② Contract time. The closer the agreed contract time is to the expiration date, the smaller the profit opportunity and the lower the option fee. When the expiration date comes, the option fee will be zero.

(3) the potential ability of the stock. This ability means that changes in stock prices can bring possible or even considerable returns to investors. Option trading is different from ordinary stock investment, and it has obvious speculative nature, and its profit is entirely based on stock price fluctuation. Stock price stability will bring huge profits to investors, but it is not attractive to option investors. If the stock price fluctuates greatly, there will be more potential profit opportunities, and of course the option fee is also high.

Stock index option

Stock index option is a derivative security based on market index; Stock index futures are commonly used by stock investors to reduce the macro-systemic risks of stock investment.

Stock index options are produced on the basis of stock index futures contracts. The option buyer pays the option fee to the option seller to obtain the option to buy or sell the stock index contract at a certain price level, that is, the stock index level, at or before a certain time in the future. The first common stock index option contract appeared in Chicago Board Options Exchange1March, 983. The subject matter of this option is the S&P 100 stock index. Subsequently, American Stock Exchange and new york Stock Exchange quickly launched the index option trading. The index option takes the common stock price index as the target, and its value depends on the value and change of the stock price index as the target. Stock index options must be paid in cash. The amount of cash closed is equal to the product of the difference between the present value of the index and the exercise price and the option multiplier.

Stock index option gives the holder the right to buy or sell a specific stock index at a specific price on or before a specific date (European) or a specific date (American), but this is not the responsibility. The buyer of stock index option needs to pay a premium for this right, while the seller of stock index option can charge a premium, but when the option buyer exercises his right, he is responsible for fulfilling the obligation to buy or sell a specific stock index.

The earliest stock index option transaction was launched by CBOE in March 1983+ 1, which is S. Unlike stock index options, the bulls of stock index options only have rights but no obligations, and the bears of stock index options only have obligations but no rights.

(2) The lever effect is different

The leverage effect of stock index futures is mainly reflected in trading larger contracts with lower margin; The leverage effect of options reflects the leverage of option pricing itself.