Call option strategy
Buy naked call option
- When investors have high confidence of the upward trend of stock prices in a certain period of time in the future, they can buy call options to obtain greater returns. The following describes the options for different time levels.
- Day trading:
- 1. Intraday traders make use of small-level fluctuations in stock prices to earn profits, and should choose options with high delta values; if the delta value is too low, stock price fluctuations cannot bring profit to day traders.
- 2.Usually short-term (1-2 week expiry date) in-the-money options have high delta values. When the delta value is higher than 0.6, it can respond quickly to small stock price fluctuations.
- Short-term trading
- 1. When investors determine the upward trend of the underlying object in the short term (1-2 weeks), they will also choose the high delta option used by intraday traders. But the expiration date can be appropriately extended to reduce risk of stock prices falling.
- Midline trading
- 1. When investors extend the trading cycle, in mid-line trading, options with low delta values should be used, that is, options with a longer expiration date.
- 2. Investors speculate that the stock price will increase significantly in a few weeks and months. At this time, buying an at-the-money option with low delta value can achieve better returns
- Long-term trading
- 1. Under normal circumstances, the risk of buying out-of-the-money options is high, but when the time period is very long (greater than 9 months or more), you can consider options with slightly out-of-the-money values, and exchange lower premiums for larger returns.
Sell a call option (Covered call)
- When investors hold 100 shares or more of a specific stock, they can sell call options on that stock.
- The maximum profit is the difference between the stock's exercise price and the stock price plus the premium for selling call options.
- Risk
- 1. When the stock price rises above the exercise price, it will be automatically exercised, and the part of the stock price that exceeds the exercise price cannot be obtained.
- 2. When the stock price continues to fall, selling the call option will cause the corresponding stock of the option to be locked and the stop loss cannot be sold before the expiry date. The maximum loss is the stock price minus the premium received by selling the option.
- For long-term stockholders, when the stock price drops, the option premium can make up for part of the loss of the decline, and can also increase the income of stockholders.
- When the stock price rises significantly, the profit of selling call options will be smaller than holding stocks. Therefore, it is not recommended to participate in selling call options when the stock is in a sharp upward trend.
Bull spread
- Spread options refer to buying and selling options on the same expiration date. Bull market spread options are usually used in conservative and bullish situations to reduce costs
- There are two strategies for bull spread options
- 1. Debit spread: Buy a low-priced call option and sell high-priced call options on the same expiration date. When the stock price exceeds the exercise price of the high-priced option, the maximum profit can be achieved; the maximum profit is the difference between the two options exercise price multiplied by 100 Subtract the premium paid for purchasing this strategy.
- 2. Credit spread: buying a low-priced put option and selling high-priced put options on the same expiration date. When the stock price closes at the exercise price of the high-priced option, the maximum return can be reached; the maximum return is the income from trading the spread option (Credit).
- Examples of advanced usage scenarios:
- 1.The buyer holds a call option with an exercise price of $20 for X stock that expires in January. When the stock price is $22, the buyer buys this option with $300 ($3 per stock value). But now the stock price drops to $18, this option only worths $150 ($1.5 per stock value). As a remedy of losses, the buyer then sells two call options for X stocks that expire in January with an exercise price of $20, and at the same time purchases an option for X stock that expires in January with an exercise price of $15. At this time, the buyer’s holding position is a long call option of $15 in January and a short call option of $20 in January. This combination is called a bull market spread option.
- 2. The original strategy (one naked call option with an exercise price of $20) will require the stock price reaching $23 to maintain a breakeven at maturity date. Under the bull spread strategy, the stock price only needs to reach 18 yuan on the maturity date to be able to balance the cost.
看涨期权策略
买入看涨期权(Naked call option)
- 投资者对股价在未来特定时间内的上升趋势有一定把握时,可以通过买入看涨期权来获取更大收益,以下介绍对于不同时间级别的期权选择
- 日内交易
- 日内交易者利用股价在小级别的波动来赚取收益,应当选择delta值高的期权;如果delta值过低,股价的波动无法给日内交易者带来盈利空间
- 通常短期(1-2周到期日)价内实值期权delta值高,当delta值高于0.6对小幅度的股价上涨波动也能有迅速的反应
- 短线交易
- 当投资者对标的物在短期内(1-2周)的上升趋势确定,通常这种情况下,也会选择与日内交易者使用的高delta值期权,但是可适当延长到期日,以降低股价下跌的风险
- 中线交易
- 当投资者将交易周期拉长,在中线交易中,应当使用低delta值的期权,即为到期日较远的期权
- 投资者推测股价在几周几月有较大涨幅,此时买入平值低delta值期权能达到较好收益
- 长线交易
- 通常情况下买入虚值期权风险大,但在时间周期很长(大于9个月及以上)的情况下,可以考虑略微价外虚值的期权,以更低的权利金换取较大收益
卖出看涨期权(Covered call)
- 当投资者持有100股及以上特定股票,可以卖出该股票的看涨期权
- 最大盈利为股票行权价与股价的差额加上卖出看涨期权的权利金
- 风险
- 当股价涨超行权价会被自动行权,股价超过行权价格的部分无法获得
- 当股价持续下行的时候,卖出看涨期权会导致期权对应股票被锁定无法在到期日之前进行卖出止损,最大亏损为股价减去卖出期权收到的权利金
- 对于长线持股者,当股价下跌的时候,期权权利金可以弥补部分下跌的损失,也可以增加股票持有者的收入
- 当股价出现显著的上涨,卖出看涨期权的收益将会比持有股票小,因此不建议在股票处于大幅上涨趋势中参与卖出看涨期权
牛市价差期权(Bull spread)
- 价差期权是指在同样的到期日下买入并卖出期权,牛市价差期权通常使用于保守看多的情况,降低成本
- 牛市价差期权有两种策略
- 1. Debit spread:买入一个低价看涨期权同时卖出同一到期日的高价看涨期权,当股价超过高价期权行权价可以达到最大收益;最大盈利为两张期权行权价差额乘以100减去购买此策略支付的权利金
- 2. Credit spread:买入一个低价看跌期权同时卖出同一到期日的高价看跌期权,当股价收于高价期权行权价时可以达到最大收益;最大收益为交易该价差期权所得到的收入(credit)
- 进阶使用场景示例:
- 目前买家持有一手1月到期的X股票20元行权价的看涨期权,在股价22元的时候由300元购入这张期权,但是由于股价下跌至18元此时这张期权只剩下150元的价值。作为期权亏损时补救措施,此时买家卖出两张1月到期的X股票20元行权价的看涨期权,并同时买入一张1月到期的X股票15元行权价看涨期权。此时买家手上持有的头寸为,一张1月15元看涨期权多头,1张1月20元看涨期权空头——即为牛市价差期权
- 原本到期日需要达到23元才能保持盈亏平衡,在此策略下,股价只需要在到期日达到18元就能够持平成本