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the bull market is here, and the jokes don’t stop.

one of them is: "if you buy a 10cm one, you will be in a daze looking at 20cm; if you buy a 20cm one, you will be in a daze looking at 30cm; if you buy a 30cm one, you will be in a daze looking at hong kong stocks with no price limit; if you buy hong kong stocks with no price limit, you will be in a daze looking at 18 i was stunned by the new stocks that were 18 times the new stocks; i was stunned by the options that were 239 times the new stocks.” indeed, on the last trading day before the holiday, the trend of opening accounts spread to brokers and futures companies.

a reporter from the financial associated press learned that as the market has strengthened recently, futures companies and other intermediaries have received a lot of account opening inquiries about stock index futures, stock index options, and etf options. “significant increase!” said a person from a branch of a futures company when talking about the recent demand from customers to open options accounts.

“it’s so exciting!” an option investment customer expressed his excitement to the reporter.

futures companies are also "running in both directions" with investors. many futures companies have recently published articles on their official weibo to explain to investors in detail the process of opening an account for stock index futures on the internet, account opening conditions, etc. some futures companies or brokers also publish investment education articles and popular science articles. basic knowledge of etf options and stock index options.

although enthusiasm for opening accounts is rising, the actual number of account openings is limited by higher threshold requirements. for investors participating in the options market, institutions remind that under the current situation of rapid increase in implied volatility, it is recommended to control risks and trade cautiously. .

options account opening inquiries increased

"many individual customers are anxious to open options accounts." under the current market situation, a brokerage person mentioned that he has recently been faced with a lot of individual account opening questions. the questions not only involve opening securities accounts, but also opening options accounts.

another person from a futures company said that recently the company has received a lot more inquiries about opening options accounts than before, and more related applications have appeared in the background. some futures company researchers also said that the specific number of accounts opened is currently unclear, but there are indeed many investors who come to inquire about applying to open options.

a reporter from the financial associated press learned that the demand for opening these option accounts is mainly for stock index options and etf options. currently, china financial exchange has listed csi 300 stock index options, sse 50 stock index options, and csi 1000 stock index options; shenzhen stock exchange has szse 100 etf options, gem etf options, csi 300 etf options, and csi 500 etf options. there are 5 stock option varieties including options; the shanghai stock exchange has sse 50 etf options, csi 300 etf options, csi 500 etf options, kechuang 50 etf options, etc.

with the recent strengthening of the stock market, the price of derivatives has risen dizzyingly, naturally attracting the attention of investors. for example, as of the close, the october 6750 contract of the csi 500 etf under the shenzhen stock exchange closed up 1329.17% today; the csi 1000 index 2412c6600 contract under the china financial futures exchange also closed up 435%. as for stock index futures, the main contracts of the csi 300, csi 500 and csi 1000 futures are all at daily limit, and the main contract of the shanghai composite 50 index has also risen by more than 9%.

although the number of inquiries has increased, the above-mentioned industry insiders believe that options are a special category and the threshold for opening transactions is relatively high, so the actual number of accounts opened may be lower than the number of applications; some industry insiders believe that due to the limited account opening threshold for options, it may lengthen the entire account opening cycle and may not keep up with the current market conditions.

judging from the content released by futures companies, securities firms and other institutions, the opening of stock index futures options trading authority requires 500,000 funds and capital verification for 5 consecutive trading days; investors need to pass the futures basic knowledge exam and score above 80 points; 10 if there are 10 trading records or 20 simulated trading records within a trading day, if there are 50 trading days of commodity futures trading records within a year, the exam can be exempted; professional investors or investors with suitability assessment results of c4 or c5 ordinary investors, etc.

the opening conditions for stock options (i.e. etf options) include the need for 500,000 funds and 20 trading days of capital verification; designated trading in a securities company for more than 6 months and qualifications to participate in margin financing and securities lending business or financial futures trading experience; or in futures the company has opened an account for more than 6 months and has financial futures trading experience, etc.

in addition to individual customers, the reporter learned that private equity companies with cta strategies are currently developing option strategies. they are still in the internal testing stage and may release related products early next year.

what do you think of the hot market?

how hot is the market? a reporter from the financial associated press learned that in the past five trading days, the shanghai and shenzhen 300 etf call options have increased by more than a thousand times.

according to zhou tuo, a researcher at ping an futures, policies that far exceeded expectations have brought about the current "thousands of miles" market situation. stock index options, especially deeply out-of-the-money call options, have experienced staggering increases due to their ultra-high leverage ratios.

“take the october 300 etf call option with an exercise price of 3.6 as an example. it went from being deeply out-of-the-money to being deeply in-the-money within one week, and the highest increase since the low on september 18 was nearly a thousand times. from the perspective of implied volatility, the call options at each strike price are significantly higher than the put options at the same price, indicating that there are still many investors betting on the stock market to continue to surge," he said.

specifically, monetary policy took the lead on september 24, and two points are eye-catching. one is to guide the reduction of existing mortgage interest rates; the other is to create structural monetary tools for the first time to support the development of the capital market. secondly, the china securities regulatory commission issued the "six mergers and acquisitions" and introduced new regulations on "market value management". the introduction of these two policies further deepens the reform of the capital market. finally, active monetary policy must also be supported by fiscal policy. the political bureau meeting at the end of september to discuss the economic situation and economic work was not a routine arrangement, highlighting the "sense of urgency" of the policy. real estate is the highlight of this meeting, and "promoting the real estate market to stop falling and stabilize" is a new expression.

zhou xiaoshu, an options analyst at nanhua futures, analyzed that the current option implied volatility has increased significantly. the implied volatility of kechuang 50 etf options has increased to 139%, and the implied volatility of gem etf options has increased to 71%. options implied volatility rose to all-time highs.

"due to the sharp rise in underlying prices, the implied volatility has risen sharply, and the premiums of call options have risen sharply, with some out-of-the-money call options rising by more than 500%." ​​zhou xiaoshu explained that the trend of put option premiums is divided, with most put option premiums falling, and some put option premiums falling. deeply out-of-the-money put premiums have risen, driven primarily by a surge in implied volatility.

as for stock index futures, wang ying, a stock index futures analyst at nanhua futures, mentioned that judging from the current stock index futures and derivatives indicators, the basis premium of the futures index has reached a record high, and the pcr of option positions has risen sharply, reflecting that the market's long trading sentiment may be overheated. since september 24, under the influence of favorable policies, the stock market trend has shown the characteristics of "fast rising" emotional trading conditions.

looking ahead to the market outlook, how can investors participate in the derivatives market? many industry insiders emphasize risk control. zhou tuo believes that with the successive introduction of policies, the market will remain strong. the dawn of the bull market has emerged. options, with their small and large characteristics and ultra-high leverage, have always been a powerful tool for making wealth in the bull market. "but investors should also be reminded that options are a double-edged sword. with the sharp increase in implied volatility, the cost of options gaming is also rising rapidly. while enjoying the bull market, you also need to pay attention to risk control and do not be greedy. and was thrown off the back of the bull.”

zhou xiaoshu also suggested that trading be cautious when the current volatility has risen to historical highs and the uncertainty of future market conditions is high. "currently, options are priced on the high side and the buying cost is high. investors can use option portfolio strategies such as vertical spreads and ratio spreads to trade. as derivatives, the main function of options is risk management. investors who hold stocks or stock funds, put options can be purchased appropriately for hedging.”