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In the 17th National Futures (options) real trading competition "Zhengshang Exchange Options Special Award" competition, PTA options have become the preferred trading variety of many players, and the trading volume ranks first in the option variety.
In recent years, the volume of PTA options has been increasing year by year. "On the one hand, this is affected by the scale of PTA futures transactions, and on the other hand, it is determined by the nature of the variety itself." Cao Baiyang, an analyst at Yide Futures, said that according to the data in the first three quarters of this year, the total transaction size of PTA futures was 418 million lots, and the average daily position size was 255,500 lots. In addition, affected by crude oil and other varieties, the PTA spot price fluctuates greatly during the year, which also increases the risk aversion demand of enterprises and attracts the attention of investors.
From the perspective of trading, taking the market in the third quarter as an example, in the case of the continuous rise of PTA futures prices and the gradual decline of the implied volatility of options, it is more appropriate to construct a proportional call spread portfolio strategy, and can effectively manage the downside risk of prices. In addition, with the liquidity of the front-month contract in the PTA options market gradually increasing, the volatility trading strategy is also a good choice. In order to cope with the risks such as long holidays and macro events, some participants will also consider using options for tail risk management of futures holdings.
"The transaction of PTA options shows a trend of rapid growth year by year, reflecting the recognition of PTA options by the industry and investors." Cao Baiyang introduced that the participating groups of PTA options are mainly divided into three categories: the first type is the on-market options market makers, which provide support for the smooth operation and liquidity of the options market; The second category is the industrial enterprises for the purpose of risk management, through the use of option tools to protect spot and futures positions, and further achieve the purpose of cost reduction and efficiency; The third group is the trading group for the purpose of wealth management, using PTA options to achieve volatility or directional trading strategies.
In the interview, the Futures Daily reporter learned that the current PTA option is widely used in the industrial chain, which has a lot to do with its ability to help the real industry achieve refined risk management.
"Options offer more possibilities for industry risk management. In particular, in 2021, the commodity market has seen a wave of rising prices, and the use of traditional futures hedging is facing pressure to increase margin. The unique characteristics of options, combined with a variety of portfolio strategies, can meet different risk management requirements." State Investment Anxin (Shanghai) Investment Co., Ltd. chemical business department responsible for Hao Daqing said.
In this regard, Li Jie, deputy director of the current business department of Galaxy De Rui, also said that for enterprises, options are a kind of financial derivatives that can be customized.
"In futures trading, with the change of futures prices, in theory, the returns and risks faced by buyers and sellers are linear, and the potential profits and potential losses are symmetric. After the hedging of basis trade is introduced, futures and spot hedging are used to improve this relationship, and the traditional price change relationship is transformed into the basis change relationship. After the further introduction of option trading, multi-dimensional choices can be made according to the needs of real enterprises, so as to provide a more appropriate hedging scheme for real enterprises." Li Jie told reporters that the use of a variety of combined options can more effectively help entities to achieve stable procurement or sales and risk control purposes.
It is understood that at present, basis trade and trade with rights are gradually being promoted in the energy industry, and trade with rights is a mode of integrating options into spot trade.
In Cao Baiyang's view, compared with the traditional "one price" and the base price model, trade with rights can connect the upper, middle and downstream enterprises, manage the risk of price fluctuations, and meet the individual needs of different enterprises, and provide help for enterprises to achieve stable development.
Respondents generally believe that in order for a mature option variety to better play the function of the service industry, on the one hand, it needs to be guaranteed by an appropriate trading system, and on the other hand, it also needs to be supported by sufficient liquidity in the market.
In this regard, Cao Baiyang said that in recent years, Zhengshang Exchange has continuously optimized the option trading system, such as adjusting the option position limit, optimizing the option contract hanging rules, adjusting the option contract expiration date, etc., in order to maximize the function of the option service entity. At the same time, through the popularization of option knowledge, as well as the establishment of "Zhengshang Exchange Option Special Award" and other activities over the years, it has also expanded the scope of option participation and provided help for the active option market.
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