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hkfe index option
- Thread starter flyingforget
- Start date
Quote from flyingforget:
then does that mean you have to wait until the expiration day
if the option is European option
In general, you can always trade in and out, however, as the other poster noted if there's no liquidity then you might have a problem getting a fair price, but as yet another person mentioned, you can do an RFQ.
Don't confuse option's style with trading an option.
Quote from flyingforget:
Steve What is it
thank you
It is literally a request for quote. When you have an instrument that doesn't have any market quotes, you can request a quote for it. It's like asking for people to quote you a market on it.
http://en.wikipedia.org/wiki/Request_for_Quotation
If I buy a put option strike price is 24200 multiple is 50
at the end of day the price is 23800
if I buy a future at 23800
could I get 400 points at the expiration day?
am I right
thank you
at the end of day the price is 23800
if I buy a future at 23800
could I get 400 points at the expiration day?
am I right
thank you
A put gives you the right to sell the underlying at the strike price. So if you buy a put with a strike price of 24200 and buy a futures contract at 23800 then exercising a put at expiration gives you a profit of 24200-23800-(premium paid for the put). However, you would only exercise the put if it is ITM, otherwise it doesn't make sense to exercise it.Quote from flyingforget:
If I buy a put option strike price is 24200 multiple is 50
at the end of day the price is 23800
if I buy a future at 23800
could I get 400 points at the expiration day?
thank you
By the way, long futures+long put=long call.
Quote from MTE:
A put gives you the right to sell the underlying at the strike price. So if you buy a put with a strike price of 24200 and buy a futures contract at 23800 then exercising a put at expiration gives you a profit of 24200-23800-(premium paid for the put). However, you would only exercise the put if it is ITM, otherwise it doesn't make sense to exercise it.
By the way, long futures+long put=long call.
if the price is above 24200 then I will get more than 400 points
if it is below 23800 then I will get 400 points
am I correct? could I substitute the future with a call option?
Quote from flyingforget:
if the price is above 24200 then I will get more than 400 points
if it is below 23800 then I will get 400 points
am I correct? could I substitute the future with a call option?
Yes, if the price is above 24200 then you will get the selling price-23800-premium.
If it is below then you will get 400-premium paid.
You can substitute the long futures and long put with long call.