There are three types of options on the market, namely stock options, stock index options and commodity options. Among them, one stock option is 10,000, while one stock index option is 300 (depending on the investment target), and one commodity option is 10 (depending on the investment target). Here, one means one lot. Below is the popular science of how much an option is. How many copies of the spot are equal to this? This article comes from: Option Sauce
1. How much is an option?
The measurement unit of an option is related to the specific option type. Taking 50ETF options and CSI 1000 stock index options as examples, one lot is equal to one.
In 50ETF options, one option usually refers to 10,000 shares; while in CSI 1000 stock index options, one option usually refers to 100 shares. Therefore, for 50ETF options, 1 lot is equal to 10,000 shares; for CSI 1000 stock index options, 1 lot is equal to 100 shares.
Options trading rules include option type, exercise price, expiration time, etc. Option varieties refer to the underlying assets corresponding to the options, including stocks, commodities, indices, etc.
The exercise price refers to the price at which the option can be exercised when it expires, including the exercise price of call options and the exercise price of put options. The expiration time refers to the expiration time of the option. Before expiration, you can choose to exercise or give up the exercise. At expiration, if the conditions are met, delivery can be carried out. Establishing an options position usually requires paying a margin, which varies for different options based on factors such as the price and volatility of the underlying asset. The income of options is related to the changes and volatility of market prices. If the option is not exercised at expiration, the holder will lose the margin paid, and the position holder will receive the income from the margin.
2. Is there one option per lot? How many shares are there in one option?
Taking 50ETF options as an example, one lot is equal to one lot, and one lot usually refers to 10,000 shares.
This is why the options contract quotes we often see usually have many decimal points at the end.
To actually convert it, you need to multiply the quotation unit by 10,000 to get the real price of the contract.
Of course, the CSI 300 ETF options are also understood in this way.
3. How much does one lot of 50ETF options cost?
The simplest calculation method is to multiply the current price by 10,000 to get how much each piece costs;
Therefore, the subscription and put prices for each exercise price are different. The lowest one may only cost a few yuan to make one, and the money you pay is the so-called premium.
Example: The current price is 0.0013*10000=13 yuan per piece.
4. How much is one option, and how many spot shares is one option?
Among financial derivatives, options are a very important investment tool. For options investors, it is very important to understand the unit of an option and its relationship to the spot price. So, how much is an option? How many shares of spot is one option equal to?
First, we need to clarify the unit of the option. Usually, the unit of option is "ticket", and one option represents one option contract. Unlike stocks or other financial products, options are not measured in quantity, but in "tickets".
Next, we want to explore the relationship between options and spot. The value of an option is determined by a variety of factors, including the price of the underlying asset, exercise price, remaining expiration time, volatility, etc. However, from an investor's perspective, it is necessary to understand the spot quantity corresponding to an option. Usually, one option corresponds to one spot quantity. In other words, if you purchase a call option, the underlying asset corresponding to this option is a spot. In the same way, if you buy a put option, then this option also corresponds to a spot.
However, in practice, because the price of the underlying asset may change, the specific investment amount to purchase a spot or an option will also vary. Therefore, investors need to choose an appropriate investment strategy based on their investment goals and risk tolerance.
To sum up, the unit of an option is "ticket", and an option usually corresponds to a spot. Understanding the unit of an option and its relationship to the spot is very important for investors to help them better understand the investment value and risk of options.