Produced by Odaily
Editor | Hao Fangzhou
Produced by Odaily
Recently, top exchanges have been making continuous moves in the options field. Binance has acquired options exchange JEX, and OKEx, CME, and Bakkt will also launch options products.
Highlights of this issue:
Highlights of this issue:
It is said that options are more complicated than futures and spot. What is so complicated?
Can options be leveraged? Is it riskier than futures?
How to use options to hedge risks and lock in profits?
secondary title
Kangkang:
Kangkang:
secondary title
Kangkang:
Kangkang:
"Options have an exercise date and exercise price, so they have more intrinsic value and time value than futures. Intrinsic value + time value = option value. In a call option, when the current price is lower than the exercise value, it is called an out-of-the-money option. That is, the intrinsic value is zero. When the current price is higher than the exercise value, it is called a real option, and the intrinsic value is greater than zero. The time value generally decreases as the exercise date approaches.
Since there are more call options and put options than futures, on the basis of long and short, there are more long volatility of buying up and down at the same time and volatility of selling up and selling down at the same time.
Since the option value does not want the futures value to anchor the spot value, and has concepts such as time value and interest rate, several indicators have emerged:
Delta=option price change/underlying asset price change;
Gamma is the second derivative of the Delta value;
Theta = change in option price/change in time to expiration;
Vega is the first-order partial derivative of the option price with respect to the volatility of the underlying asset price;
Rho=change in option price/change in risk-free rate;
Vega = Change in option price / Change in volatility.
The BSM pricing formula of option products is: C=S·N(d1)-X·exp(-r·T)·N(d2), where input: underlying asset price, exercise time, risk-free interest rate, exercise price , implied volatility.
secondary title
Kangkang:
Kangkang:
"Option leverage = option value/spot value. Generally, the leverage multiple of out-of-the-money options is relatively large, while the leverage multiple of real-money options is small.
secondary title
Kangkang:
Kangkang:
"Risk hedging, you can buy the same amount of options in the opposite direction. For example, if you bought spot bitcoin, but you are afraid that the price of bitcoin will fall and your profits will be damaged, you can buy it at a lower price than the spot price. The same number of put options to ensure the safety of funds.
secondary title
Kangkang:
Kangkang:
"At present, it can be said that there are relatively few bitcoin option products, and the mainstream ones are like JEX just acquired by Binance. There are more currencies on them, not only bitcoin and ethereum, but also EOS, LTC, and BNB. The period of its options is relatively short, the longest is only one month, and there is only one strike price for each option. The important thing is that its seller cannot increase leverage. Traditional options, SSE 50ETF stock index options can be increased up to 6 times Leverage, which seriously affects the efficiency of funds. Another more professional platform is Deribit. The term of Deribit is relatively long, up to July next year. Its exercise price is higher than that of JEX, but the currency is relatively small , You like ErisX and LedgerX, whose KYC is stricter, so they are far away from us. There is also a futures exchange, FTX, which currently does not have the option to list Bitcoin, but it has a short-sell and long-sell Bitcoin volatility move token. currency.
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