【有獎】牛友幫幫忙，避開投資路上的坑
[Review of Fellow Investor Help ⑧] How to Avoid Low-Liquidity Options!
Last Friday, Cai Xiaoxiong bought a low-liquidity option, and fellow investors offered their opinions to help him. He is very grateful.[Study Time]
Click me to learn from others' mistakes!→[Fellow Investor Help 8]! Finance Little Bear can't sell his options and is crying T﹏T
Click me to learn from others' mistakes!→[Fellow Investor Help 8]! Finance Little Bear can't sell his options and is crying T﹏T![[Hurt]Last Friday, Cai Xiaoxiong bought a low-liquidity option, and fellow investors offered their opinions to help him. He is very grateful. [Study Time] [Beckon]Click me to learn from others' pitfalls!→[Fellow Investor Help 8]! Finance Little Bear can't sell his options, and he's crying T﹏T [What fellow investors say] [Rose]@思念是Classmate, you've organized options using a mind map.Open Interest and Trading Volumethe relationship. Simply put, options are a zero-sum game: the larger the trading volume, the greater the market activity; the larger the open interest, the more counterparties there are, the easier it is to execute trades, and the lower the liquidity risk. [Beckon]Click me to learn →What deeper implications lie behind options trading volume and open interest? [Rose]@零防小郭Classmate, remind Cai Xiaoxiong: never buy deeply out-of-the-money options just because the premium is cheap. Generally speaking, deeply out-of-the-money options have low liquidity and will waste time value for nothing. On Futu, you can fromView open interest on the quote page, can be derived fromView trading volume on the options chain。 [Beckon]Click me to learn →How do I view the trading volume and open interest of the options chain on Futu? @科大股神As the classmate rightly pointed out, solving the problem is more important. If, like Cai Xiaoxiong, you've purchased illiquid options, we certainly can't just sit back and wait for things to get worse—so what should you do? Here are a few strategies to consider (for reference only; not investment advice): [Beckon]Click me to learn →How to master options trading with advanced strategies? @鄉村牛姑姑With...](https://nnqimage.futunn.com/1647940478497-27127046-android-org.jpg/big?imageMogr2/ignore-error/1/format/webp)
[What fellow investors are saying]
@思念是Classmate, you've organized options using a mind map.Open Interest and Trading Volumethe relationship. Simply put, options are a zero-sum game: the larger the trading volume, the greater the market activity; the larger the open interest, the more counterparties there are, making it easier to execute trades and reducing liquidity risk.
@零防小郭Classmate, remind Cai Xiaoxiong: never buy deeply out-of-the-money options just because the premium is cheap. Generally speaking, deeply out-of-the-money options have low liquidity and will waste time value for nothing. On Futu, you can fromView open interest on the quote page, can be derived fromView trading volume on the options chain。
@科大股神As the classmate rightly pointed out, solving the problem is more important. If, like Cai Xiaoxiong, you've purchased illiquid options, we certainly can't just sit back and wait for things to get worse—so what should you do? Here are a few strategies to consider (for reference only; not investment advice):
@鄉村牛姑姑Great question, classmate! Options are different from turbo bull/bear certificates. The real-time price of a turbo bull/bear certificate is quoted by the issuer, whereas the real-time premium for an option is determined by the options clearing house through centralized matching based on the supply and demand from buyers and sellers. This works much like stock pricing: sellers are willing to sell at a certain price, buyers are willing to buy at another, and market makers step in to match the two sides.
Well, that's all for this episode! Tune in to the "Fellow Investor Help" channel every Friday!
[Friendly Reminder]If fellow investors encounter any other questions they don't understand,Post your question with the hashtag #[Fellow Investor Help],Beibei has gathered fellow investors from all walks of life to help you answer your questions![Reward Distribution]Helping Others Award: All participating fellow investors (who meet the requirements) have been awarded 66 points.Quality Question Award: Congratulations@鄉村牛姑姑Win the Best Question Award, and NiuNiu merchandise will be delivered right to your door!
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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