1. How
are options different from other existing financial products?
Stocks
Warrants
Futures
Options
General
Asset
Asset
Contract
Contract
Return
of
carrying
Dividend
-
-
-
Exchange
SET
SET
TFEX
TFEX
Underlying Asset
-
Stocks
only
No
restriction
No
restriction
Short sell
Not
allow
Not
allow
Able
to do
Able
to do
Right
-
Call
-
Call
/ Put
When
can an
investor withdraw profits?
After sell stocks you
have on hand already
After sell warrants
you have on hand already
While holding futures
position
After closing options
positions already
2. If I expect
the market go up or down enormously, what kind of options
in which I should invest?
- Buying out-of-the-money options
with a cheap premium
3. Who are
suitable to use options?
- All investors who want to invest
in a sideways market which they are not able to profit
from other products.
- Every investor who holds an underlying stock can short
call whose the strike price is higher than a spot price
to prepare to sell the stock with higher price in the
future.
- Every investor who holds an underlying stock with
an expectation that its value might be decreased can
buy put options as insurances.
- All investors who want a limited loss and an unlimited
potential profit in investment.
4. Do I need
to deposit margin when I trade options?
- Only investors who have short positions
need to deposit; others who have long position don’t
need to deposit.
