Are stock index options the same as stock options? The answer is of course different. Stock options refer to exchange-traded ETF options, that is, index options, which are varieties of the Shanghai Stock Exchange. Stock index options refer to CSI 300 stock index options, which are varieties of the China Financial Futures Exchange. Both are different types and transactions. Of course, the trading rules are also different.
1. Stock index options and stock options are different. The differences between the two are as follows: Source: Caishun Options
1. Different meanings: Stock index options refer to the right to buy or sell a certain amount of a specific stock index at a certain time in the future. Stock options are the right to buy or sell a certain amount of a specific stock at some point in the future.
2. The corresponding subject matter is different: the corresponding subject matter of the stock index option is the stock price index. The corresponding subject matter of stock options is ETF spot and stocks.
3. Different transaction types: Stock index options are formulated uniformly by the exchange, and there are two types: call options and put options. Stock options can be divided into two types: call options and put options, which can be publicly traded in the securities market.
4. Stock options refer to stock options that are mostly opened at securities and brokerage firms. The conditions for opening an account are capital verification of 500,000 yuan for 20 trading days and passing the association’s basic examination;
5. Most accounts for stock index options are opened at futures brokers: the conditions for opening an account for stock index options are 500,000 yuan, capital verification for 5 trading days, and then passing the exam;
Secondly: the underlying objects of ETF options are ETFs listed by brokers, and the underlying objects of stock index options are CSI 300, SSE 50, etc.
2. Are stock index options the same as stock options?
Stock index options are different from stock options. In fact, to understand stock index options and stock options, you must first understand the concept of stock options. Stock options are more of an incentive nature. Stock index options are more of a free-trading investment product.
1. Concept of stock options
Stock options mean that the buyer acquires the right to buy or sell a certain number of related stocks at the agreed price on or before the expiration date stipulated in the contract after paying the option premium. Usually a listed company gives its senior managers and technical backbones the right to purchase the company's common shares at a pre-agreed price within a certain period of time.
The exercise of stock options increases the company's ownership equity. In other words, the holder of stock options purchases unissued liquid shares directly from the company, that is, directly from the company rather than from the secondary market.
2. Understanding of stock index options
It is an option contract based on stock index as the exercise type. The simplest way to understand it is that stock index options are about judging the rise and fall of the stock index, and you only need to pay a certain premium.
If the judgment is correct, you can sell the right and obtain the premium income, or exercise the right and buy stock index futures, and obtain the profit from the stock index fluctuation price difference after closing the position; if the judgment is correct, the premium will be lost.
The most common stock index option is the 50ETF option. As we all know, the 50ETF option is a product that can be traded in the T+0 mode in the secondary market. It can hedge the risks of individual stocks and is a very good choice for stock players and investment enthusiasts.
3. The difference between the two
The biggest difference between stock options and stock index options is that the former cannot be purchased freely and can only be purchased after allocation by the company of unissued liquid shares; while the latter can be freely traded in the secondary market.