Buying Options with One Blade and Two Blades

I once mentioned,2018The key word for the annual financial market should be 'speed',Now it seems to be well deserved,Especially recently,Soybean meal and50ETFTake turns performing,Make the insurance premiums in the entire market expensive,50ETFThe volatility of has been around for some time now25-30%between,Driven by the Sino US trade war, soybean meal,Also pulled up to20-25%between,Volatility represents the stability of price changes,Low volatility market trends are relatively predictable,The trend of high volatility increases the uncertainty of the market,If from the perspective of buying insurance and hedging,The high or low volatility represents the high or low cost of insurance,From the perspective of seeking investment opportunities,buyoptionThe ideas represented are diverse and diverse,On the surface, it's all a game of price difference for rights gold,But the expectations and ideas of profit sources,Compared to the ability of investors to master and understand financial operations,It could be a completely different system,Difficult to cross,Roughly speaking,Buying options to seize speculative opportunities,It can be simply divided into buying opinions and buying fluctuations, buyGamma(Delta Jump)。

People who buy opinions,It is based on the application of tools and market expectations,Relatively limited understanding of sensitivity parameters,As long as the market trend is judged correctly, profits can be made; Buying volatility is hoping to increase volatility in the future and make a profit,This part of the operation is more using far month contracts; buyGammaMore commonly used near month contracts,At the same time, it is very close to the expiration date; These three operating methods contribute different drivers of profitability,But the same thing is that they all have to bear the time value,Therefore, it is necessary to evaluate whether it is worthwhile to spend time and value to obtain the desired profit.

Volatility and cost-effectiveness:

The contracts used in the above three types of operations are most likely to be virtual contracts,In the composition of the royalty,Almost all or a considerable proportion of it is time value,If we consider from the perspective of cost-effectiveness,Low time value in low volatility scenarios,Exchange low costs for substantial trading opportunities,High cost performance ratio,But now the volatility has almost doubled,The payment of time value as the contract approaches the expiration date,Costs ranging from more than double to several times higher,In this situation,The cost-effectiveness of various operations requires even more serious consideration. Trading volatility,Most likely a professional team,I will definitely understand what kind ofthetaGo and exchangevegait is worth that,transactiongammaof,In the absence of much remaining time in the contract,We need to use several times more costs than before to win small coverage ratesdelta jump,But it may not necessarily be worth it,And the last category, which is the most widely used by people,Investors who consider market conditions and buy options,Mainly attracted by leverage,But the expansion of time value,Not only does it greatly reduce the effectiveness of leverage,At the same time, it also undertakes more consumption,In the context of an uncertain surge in market conditions,Various scenarios for buying options may become unsuitable.

A big shaking bottoming guess:

The market trend of one day's sharp rise, one day's sharp fall, and the next day's sharp drop with a low opening and closing is the highest,Just recently50ETFPortrait of options,If the dream of buying is bullish and after a big rise,Turning into buying bearish and then falling sharply,After continuing to switch to buying and being bullish,Obtaining an incalculable multiple profit,If I come here once in my life, I will instantly become wealthy and free,Especially in a highly volatile pattern,If the skills and desires of guessing the head are both present,It seems that such a dream is indeed possible to come true,But in reality, there are two situations that can greatly reduce the success rate.

The first type,Assuming the operational skills are really good,Can withstand significant fluctuations in the trend,Buying options repeatedly and repeatedly,It is indeed possible for the royalty to increase by a hundred to a thousand times,But the difficulty lies in the growth path of doubling the royalties,Investors must dare to invest all the profits from the first two attempts in the second and third attempts,And began to bear huge royalties. The buyer's market value fluctuated wildly with the fluctuations of the market,Let's not talk about whether we can handle it or not,Only considering the use of funds,That's not possible,Put all available funds into buying options,Let's make a bet without tomorrow,Do you want wealth and freedom,Do you want to exit the market,I don't think anyone would do this;

The second type,It's just an error during the process,Amidst intense fluctuations,Easy to encounter retaliatory market reversals,Withdrawn royalties,The reduction often exceeds the theoretical limitdeltaExpected share,The significant losses caused often lead people into a desperate trap.

Further Discussion on Long Term Plans for Buying Options:

10X10X10=900?

Everyone knows that,There is no reason why options can be bought every day,But there's no way,The attractiveness of this trading method is too great,Those who flock to it are still one after another,I remember the previous notes mentioned some concepts about buying options,If anyone wants to do this,The use of funds is the most important consideration,Investors rolling in the market every day,It's absolutely impossible to choose a way without tomorrow,On the other hand, we should find a buy option plan that can operate in the long term,So I want to mention it again,My option buyer plan is like this,One year preparation12ten thousand(Everyone can afford or is willing to afford funds)To compensate,I wait for an opportunity to buy once a month,Only 10000 yuan each time,If the opportunity is not good, don't buy,The first time, if it's right,hypothesis10Double flip,Retrieve10I will first calculate the cost1Ten thousand deductions,Remaining9Just wait for the next opportunity to appear,also9Total pressure of ten thousand,If it's right again, there will be90ten thousand,On the third attempt, one must enter a state of one strike, two blades, and one strike, Close your eyes90Wan Quanbu pressed up,Another thing is to wait for the favor of fate,Why should we1Get back the cost of ten thousand yuan,The reason is very simple,Because it's actually too easy to make mistakes during the process,After retrieving the cost, there are relatively no worries to worry about,It will reduce the pressure of second and third judgment and execution of trading decisions,I'm also quite willing to put all the funds under pressure,Because I had already anticipated that even if I paid for everything, it wouldn't matter,Just come again next time,If you're really stupid enough to make continuous mistakes12second,hold12I've lost all my money,So we'll have to wait and accumulate more12After ten thousand,Continuing to build dreams,I think this kind of plan and process is more practical and feasible,The point is, I won't die in action,Because of this seemingly short-term dream of becoming rich,It is actually a long-term resistance war that requires the coordination of resources from all aspects,At least I think so,What do you think?General Manager of Yong'an Options Headquarters Zhang Jiacheng