Core Viewpoint - ETF options are specialized financial instruments based on Exchange-Traded Funds (ETFs), allowing investors to buy or sell ETFs at predetermined prices in the future, providing opportunities for market volatility and risk hedging [1] Summary by Sections Opening Conditions for ETF Options - Investors must be at least 18 years old and possess full civil capacity, providing valid identification [2] - A minimum average asset of 500,000 RMB in the margin or securities account is required over the 20 trading days prior to application [2][7] - Investors need at least six months of account opening and trading experience, including a six-month A-share shareholder account and experience in margin trading or financial futures [2] - Basic knowledge of options trading is necessary, with a passing score of 80% or above on a recognized options knowledge test [2] Application Process for ETF Options - Investors should select a licensed broker or futures company for account opening [6] - After submitting the application, investors must complete a risk assessment test covering financial status, investment experience, and risk preference [7] - Signing of relevant agreements, including options trading agreements and risk disclosure documents, is required [7] - Investors must meet the asset threshold of 500,000 RMB for individuals or 1,000,000 RMB for institutions [8] Trading Strategies for ETF Options - Buy and hold strategy involves purchasing call options if expecting long-term price increases or put options for anticipated declines [9] - Covered call strategy allows investors holding ETFs to sell call options for additional income while capping potential gains [10] - Protective puts can be purchased to safeguard investments against market downturns, reducing potential losses [11] Important Considerations - Understanding contract specifications, including option types, underlying assets, contract units, strike prices, and expiration dates, is crucial before trading [12] - Choosing a regulated broker or futures company is essential to minimize risks [13] - Continuous learning and practical experience are necessary due to the complexity and high-risk nature of options trading [14]