How should options be used? Researchers suggest focusing on this indicator

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Starting from this Tuesday, the market rebounded strongly, with manyoptionInvestors exclaim that it is a bit difficult to do.
Stocks andETFHow should options be used?
Big market hedging, small market hedging. With options for insurance, investing becomes more calm and leisurely, "said an option investor.
Short term traders lament the difficulty of doing this week
Since the rebound in the market on Tuesday, stock spot prices have continued to rise, and many investors who bought put options and sold call options on Monday have not yet had time to switch their minds. Previous earnings have also seen pullbacks or even losses. More experienced option investors have stated that they have not done well in recent days, always worrying about another market pullback, not decisively buying call options or selling put options, and have not achieved positive returns.
In the middle of this week, there was a significant pullback in put options, but there were differences in the rise and fall of call options with different exercise prices. Real value, flat value, and shallow imaginary value call options rose significantly, while deep imaginary value call options fluctuated laterally and even fell.
In terms of volatility, due to the selling sentiment on Monday, the implied volatility of options has significantly increased,50ETFThe implied volatility of options has risen to38.96%, with an increase of up to24.46%And set a new high in the near future. As risk concentration is released, the implied volatility of options begins to significantly decrease, as of2month7Day closing,50ETFThe implied volatility of options is21.5%, down from Monday17.44%The market is gradually returning to rationality.
Before the start of this week's trading, most traders did not expect a strong rebound, but after continuously raising multiple positive lines, investors who sell call options and continue to hold put options suffered serious lossesfuturesSong Zhejun, a senior researcher on options, said.
Zhou Xiaoshu, a researcher on options at Nanhua Futures, added that some investors lament the difficulty of trading options in this cycle, mainly due to the drastic changes in implied volatility of options in this cycle. When the implied volatility increases, the option price will rise; When the implied volatility decreases, the option price will fall.
On Monday, the stock market experienced significant volatility, leading to a significant increase in volatility, resulting in some virtual call options rising instead of falling. In the middle of the week, the stock market rebounded and volatility fell significantly. These options fell instead of rising.
In addition, in the second half of this week, there was a rare occurrence of the opposite trend between the prices of some call options and the underlying prices, which is also one of the reasons why many option investors find it difficult to trade options this week.
Hedge traders remain calm
This Monday, was used by someone8Ten thousand 'insurance premiums' have been hedged400After the investors of the 10000 yuan stock spot were amazed, the editor also paid close attention to his subsequent trading. Compared to investors who only engage in option trading, investors who own spot stocks and participate in option trading are more relaxed, saving them the worry of stock market fluctuations.
This investor stated that after the surge in put options on Monday, they successfully utilized the insurance function of the options. Considering that the volatility was already high, they chose to liquidate most of their call options in the following working days. Moreover, after a strong rebound in the market in recent days, stock positions have been appropriately reduced, and option positions have also decreased accordingly. Recently, some put options have been left overnight.
Additionally, he mentioned that he closed his position on Thursday of this week70Zhang put the option and made it within the day200Zhang Call Option. At present, only a few call and put options are left, mainly for hedging of put and call options.

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Investors with stock positions want to use options to hedge their positions and make their investment strategies more robust. In response, Zhou Xiaoshu suggested that investors should focus on the implied volatility of options.
Implied volatility is an indicator that reflects the high or low valuation of options. When the volatility is low, use call put options for hedging; When the volatility is high, sell call options appropriately.
For example, before the Spring Festival, the implied volatility is low, and investors should purchase put options to hedge their stock positions; After the Spring Festival, the implied volatility is too high, and investors can buy put options with lower volatility, sell call options with higher volatility, and adjust the overall position of the portfolio.