1. Put option is a put option, which means that the subject matter will fall into the contract. If the market price of the underlying asset falls below the agreed price of the option in the future, the buyer of the put option can make a profit by selling the underlying asset at the exercise price. If the market price of the future underlying asset rises above the agreed price of the option, the buyer of the option may give up this right. A call option is a call option, which means that the subject matter in the contract will rise. If the stock price on the expiration date is higher than the exercise price, then the call option is a real option, and the holder will exercise and get the income. If the stock price on the expiration date is lower than the exercise price, then the call option is in virtual value and the holder will not exercise it. At this point, the value of the call option is 0.
2. The biggest loss of the buyer who subscribes for the option is the royalty, and its profit is unlimited with the continuous rise of the positive share price; The seller's biggest profit is royalty, and its loss is infinite with the increase of the positive share price, while the buyer of put option's biggest loss is royalty, and its profit is infinite with the decrease of the positive share price; The seller's biggest profit is commission, and with the continuous decline of the positive share price, its loss is infinite.
1. Subscription options:
Call writer: The holder has the right to buy a certain number of related assets at a specified price within a specified period.
Call option holders can also resell call options if someone wants to buy them. Therefore, call option is an option for the buyer. If the market is favorable to him, he can choose to implement it, otherwise he can give up. However, for the seller who has received the premium, he is obliged to sell the relevant futures contract at the execution price stipulated by option contracts at the request of the option buyer within the validity period stipulated by the option. Therefore, because the buyer pays royalties to the seller, the call option is an option for the buyer, but it is an obligation for the seller.
2. Put option:
Put option is put option, also called put option, seller option, put option or knock option. Put option means that the buyer of the option has the right to sell a certain number of the subject matter at the execution price within the validity period of the option contract, but does not undertake the obligation of selling. Put warrants are put options. Specifically, on the exercise date, investors holding put warrants can sell the corresponding shares to listed companies at the agreed price.