Dai Xia, chief options analyst at Meerya Futures, said at the Shanghai derivative Forum: the biggest characteristics of options are "change" and "limit."-Shanghai Metals Market

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Dai Xia, chief options analyst at Meerya Futures, said at the Shanghai derivative Forum: the biggest characteristics of options are "change" and "limit."

Translation 09:24:35AM May 28, 2019 Source:The Great study of the United States
The content below was translated by Tencent automatically for reference.

SMM News: the special risk management attribute of options is first shown as the nonlinear profit and loss structure of options, which should effectively cut and match the risks and returns. Second, there is a higher efficiency of the use of funds, manifested in a clear occupation of funds and a higher rate of return, and there are multiple factors adjustable leverage. Third, there is more room for fault tolerance. It's easier to see and hold it. The fourth is a more diversified approach. For example, directional trading, covered trading, volatility trading and carry trade.

The most important feature of options is "change" and "limit", flexible operation and save money. When concussion sell bullish, bearish period victory rate is very high. The choice of strategy should take into account such factors as spot exposure, market expectation and risk preference. Simple is effective, dry learning, learning and fine, fine and simple. Call options recommend short-term low-frequency operations, timely appearance. Put options recommend medium-term rolling operations and pay attention to stops or hedges. From the absolute income point of view, the call option return is always smaller than the futures, but the yield point of view is not necessarily. From the point of view of absolute risk, the risk of put option is always smaller than that of futures, but the relative risk is not necessarily. Whether to "buy" or "sell" requires a comprehensive consideration of the odds of success and odds. The best thing to do with options is:

1. When there is a point of view on volatility;

2. Touch the top or copy the bottom against the trend;

(3) when the important support or pressure level comes into play;

4. The opportunity or uncertainty of certainty is great;

5. When funds are tight.

Key Words:  Options  risks  futures 

Dai Xia, chief options analyst at Meerya Futures, said at the Shanghai derivative Forum: the biggest characteristics of options are "change" and "limit."

Translation 09:24:35AM May 28, 2019 Source:The Great study of the United States
The content below was translated by Tencent automatically for reference.

SMM News: the special risk management attribute of options is first shown as the nonlinear profit and loss structure of options, which should effectively cut and match the risks and returns. Second, there is a higher efficiency of the use of funds, manifested in a clear occupation of funds and a higher rate of return, and there are multiple factors adjustable leverage. Third, there is more room for fault tolerance. It's easier to see and hold it. The fourth is a more diversified approach. For example, directional trading, covered trading, volatility trading and carry trade.

The most important feature of options is "change" and "limit", flexible operation and save money. When concussion sell bullish, bearish period victory rate is very high. The choice of strategy should take into account such factors as spot exposure, market expectation and risk preference. Simple is effective, dry learning, learning and fine, fine and simple. Call options recommend short-term low-frequency operations, timely appearance. Put options recommend medium-term rolling operations and pay attention to stops or hedges. From the absolute income point of view, the call option return is always smaller than the futures, but the yield point of view is not necessarily. From the point of view of absolute risk, the risk of put option is always smaller than that of futures, but the relative risk is not necessarily. Whether to "buy" or "sell" requires a comprehensive consideration of the odds of success and odds. The best thing to do with options is:

1. When there is a point of view on volatility;

2. Touch the top or copy the bottom against the trend;

(3) when the important support or pressure level comes into play;

4. The opportunity or uncertainty of certainty is great;

5. When funds are tight.

Key Words:  Options  risks  futures