New outstanding contributors of the year
List of newly awarded 'Outstanding Contributors to Derivatives Analysis' in 2020
2020Global capital markets have experienced volatility due to the intertwined effects of the COVID-19 pandemic, U.S.-China tensions, and financial shocks. A structural bull market in commodities is poised to take off, while innovations in derivatives continue to enrich asset allocation options. Numerous positive developments have drawn increased attention from fellow investors toward derivatives investment.
Within our Futubull community, there are fellow investors who are eager to share. They excel at analysis and consistently produce valuable content. Over the year, they’ve guided us through understanding futures and options, familiarized us with bull/bear certificates, and helped more fellow investors uncover opportunities.
As we approach the end of the year, we've evaluated contributors using multiple criteria such as post frequency, quality content count, views, post interactions, and follower counts to select a group of newly emerging top contributors for 2020.Outstanding Contributor in Derivatives Analysis. The list is as follows!
![In 2020, the global capital market experienced turbulence due to the intertwining factors of the COVID-19 pandemic, US-China tensions, and financial shocks. A structural bull market in commodities is poised to take off, with continuous innovation in derivatives enriching asset allocation options. Many positive developments have drawn more attention from fellow investors towards derivatives investment. Within our Futubull community, there is a group of fellow investors who are eager to share their insights. They excel at interpreting complex information and producing quality content. Throughout the year, they’ve guided us through understanding futures and options, familiarized us with callable bull/bear contracts (CBBCs), and helped more fellow investors uncover investment opportunities. As the year comes to an end, we have evaluated multiple dimensions such as post frequency, number of high-quality articles, page views, post interactions, and follower counts. Based on this data, we have selected a group of newly awarded 'Outstanding Contributors to Derivatives Analysis' for 2020. The list is as follows![Party] Article contributions from newly awarded Outstanding Contributors in 2020: @飞哥细说涡轮牛熊证The Value of Callable Bull/Bear Contracts (CBBCs) So what determines the value of CBBCs? The value of CBBCs consists of two components: intrinsic value and financing costs. Intrinsic Value: The distance between the current price of the underlying asset (stock) and the exercise price of the CBBC. Financing costs: The cost charged by issuers to investors for financing, which typically decreases as the bull/bear certificates approach the expiration date. Financing costs are generally adjusted based on lending rates in the market. @港股窝轮JennyIs the Oversold Hang Seng Index Approaching a Short-term Bottom? In terms of derivatives, Hang Seng Index warrants...](https://nnqimage.futunn.com/16091237024847-999989-web-0e5c12e5ec82ea06.png/big?imageMogr2/ignore-error/1/format/webp)
20202020 Newly Emerging Outstanding Contributor Articles:
“So, what makes up the value of callable bull/bear contracts (CBBCs)?
The value of CBBCs consists of two components: intrinsic value and financing costs.
Intrinsic Value: The distance between the current price of the underlying asset (the stock) and the exercise price of the CBBC.
Financing Costs: The cost charged by the issuer to investors for financing, which typically decreases as the CBBC approaches its expiration date. Financing costs are generally adjusted based on borrowing rates in the market.
On the derivatives side, for Hang Seng Index put warrants, you can refer to out-of-the-money put warrant 25503, which expires in January next year with an exercise price of 24,800. If considering a further-out exercise price, you can look at 28469, which has an exercise price at the 24,444 level but note that it expires in October, so it's suitable only for short-term strategies. Additionally, you may also consider even further-out warrant 14078.
Warrants are affected by implied volatility, time value, and other factors. Although playing warrants over the long term may protect your principal to some extent, if the underlying stock remains range-bound for a long time, the warrant will still lose value. That’s why I choose CBBCs instead.
“In highly volatile markets, 3x ETFs experience significant erosion. In one-sided trending markets, 3x ETFs outperform single-leveraged ETFs. However, real markets are unlikely to trend consistently in one direction, so the erosion of 3x ETFs should not be underestimated, making them unsuitable for long-term holding.”
Let me introduce a simple concept:Covered Call
Its purpose is: when you areHolding the underlying stockholding stocks, byshorting call options,reducereduceyour owncost basis of holding shares
The downside is: If the stock price exceeds the strike price of the call option, thenExceed the call priceofYou won't get any of the profits
To summarize: its function isUseExceeding the call priceProfitComeIn exchange for a reduction in the cost of holding shares, it's a way to reduce one's own risk"
Its purpose is: when you areHolding the underlying stockholding stocks, byshorting call options,reducereduceyour owncost basis of holding shares
The downside is: If the stock price exceeds the strike price of the call option, thenExceed the call priceofYou won't get any of the profits
To summarize: its function isUseExceeding the call priceProfitComeIn exchange for a reduction in the cost of holding shares, it's a way to reduce one's own risk"
“1. First, think about how much loss you can bear within a day, then consider how much profit will satisfy you
2. Based on the first point, when you submit your intraday order, set a stop-loss order (I exit when there's a 20% loss)
3. Go with the trend; if you predict that the market will rise tonight, don't short easily; conversely, if you predict the market will fall, don't go long easily
4. For intraday trading, never average down your losses by adding to your positions; while it might seem rational, human aversion to losses will work against you.
2. Based on the first point, when you submit your intraday order, set a stop-loss order (I exit when there's a 20% loss)
3. Go with the trend; if you predict that the market will rise tonight, don't short easily; conversely, if you predict the market will fall, don't go long easily
4. For intraday trading, never average down your losses by adding to your positions; while it might seem rational, human aversion to losses will work against you.
5. Before the intraday session begins, review the daily chart; after placing an order, study the minute chart.”
The mechanism for subscription and redemption within the primary market lays the strongest foundation for ETF liquidity. Authorized participants can respond to market demand by subscribing or redeeming the required ETFs in the primary market, which provides substantial liquidity to the ETF.
Congratulations to the above fellow investors for being awarded as Outstanding Contributors in derivatives analysis for 2020!
This is also an opportunity to thank all outstanding contributors in the derivatives sector for their continued contributions throughout the year! Thank you for bringing so much excellent content to everyone!
We are fortunate to have had your companionship in 2020; looking forward to us joining hands once again in 2021!
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FAQ for Outstanding Contributors
1.What is an [Outstanding Contributor]?
The [Outstanding Contributor] title is awarded to Futubull community users who consistently share high-quality content, including knowledge, experience, and insights, in their areas of expertise. Honorees will have a special badge displayed on their personal profile pages within the Futubull community. Users granted this honor can view specific details on their personal profile page.
What behaviors and data are considered when evaluating [Outstanding Contributors]?
The Futubull community evaluates Outstanding Contributors and their areas of contribution based on dimensions such as originality, first-release content, activity levels, user influence, clear positioning, and professional qualifications.
Under what circumstances will the Outstanding Contributor designation be revoked?
3.1 Long-term lack of production of high-quality content, or content contribution values that no longer meet the Outstanding Contributor evaluation criteria;
3.2 Self-deletion of previously contributed high-quality content or other actions leading to content contribution values that fail to meet the Outstanding Contributor evaluation criteria;
3.3 Multiple user reports due to violations or other actions violating the 'Futubull Community General Management Rules,' which make the user ineligible for Outstanding Contributor status.
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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