How to choose option strategy for small cost investment?

2022-05-27 0 By

In option investment, a large number of investors are unlikely to invest a large amount of money at the beginning, and will invest in the market with a small transaction first. Then what option strategy is suitable for the investment with a small cost?I. Characteristics of small cost Investment Investors can be divided into institutional investors and small and medium investors according to the amount of capital.Small and medium investors have the advantage of flexible capital, but their capital scale is relatively small, but small and medium investors are also an indispensable part of the financial market, effectively improve the market liquidity, undertake part of the risk.Second, the option strategy of small cost investment the capital cost of choosing investors is small, and the strategy method that can be adopted is limited.Investors should think carefully when choosing trading strategies and play to their strengths.1. Unilateral strategy can be used unilateral strategy is one direction strategy.The strategy is simple to operate and requires little knowledge. It can be executed by understanding the characteristics of option trading.Is the most common strategy, for small and medium investors, unilateral strategy is the call option.In a call option contract, small investors also consider the strike price of the option contract.Medium and small investors should consider the low cost and income when buying the option contract, so the virtual value of the option is more appropriate.In short, for small and medium investors, one-sided strategies are dominated by call option contracts, and fake options are the best in terms of strike prices.At the end of positions, it is recommended to hedge positions several months in advance.Bilateral strategy is two two-way strategy, is a combination strategy, in this combination strategy, specific depends on the investor’s judgment of the underlying price trend.Strategy is characterized by low investment and low risk.When choosing option contracts, it is recommended that small and medium investors pay attention to the appropriate dummy value, which is conducive to optimizing the input-output ratio.In the operation of option contract position settlement, it is suggested to settle the loss of the position first, and to expand the profit as much as possible to achieve the expected investment goal while controlling the risk after settling the profit position.More options knowledge source: Caishun Options collation and release.