Core Viewpoint - The article discusses the high implied volatility of Shanghai silver options, suggesting that investors can develop corresponding options strategies based on their predictions of Shanghai silver futures prices. The volatility is influenced by macroeconomic or geopolitical events, leading to significant short-term fluctuations in precious metals options [1][8]. Group 1: Market Overview - Last week, precious metal futures surged, with the implied volatility of Shanghai silver options reaching a historical high of over 65%, indicating a strong market expectation for price fluctuations [1][3]. - As of December 26, 2025, the total trading volume of options contracts was 607,227, a decrease of 308.93% from the previous trading day, while total open interest increased by 12.36% to 344,794 contracts [3]. Group 2: Volatility Analysis - Implied volatility is a key variable in options pricing, and high implied volatility often indicates that options may be overvalued, especially if it significantly exceeds historical volatility [4][8]. - The article emphasizes the importance of understanding the relationship between implied volatility and options pricing, noting that higher volatility typically leads to higher option premiums [5][8]. Group 3: Options Strategies - Investors are advised to consider various options strategies in the context of high implied volatility, such as buying out-of-the-money call options for potential high returns, while being aware of the risks associated with time decay and volatility regression [9][15]. - The bull call spread strategy is recommended for those expecting limited price increases, allowing investors to reduce the cost of buying call options while still benefiting from upward price movements [10][12]. - The covered call strategy is suggested for investors holding long positions in Shanghai silver futures, enabling them to enhance returns by selling out-of-the-money call options [13][15].

Report Industry Investment Rating The provided content does not mention the report industry investment rating. Core View of the Report Since 2024, the gold market has entered a strong upward cycle, with prices repeatedly hitting record highs. The main drivers include the shift in market trading logic towards macro - variables, high geopolitical risk premiums, and the global central banks' systematic increase in gold reserves. Options offer investors effective ways to participate in the gold market and manage price - fluctuation risks. Different strategies, such as hedging and unilateral strategies, can be used according to investors' positions and market expectations. The key factors of gold option strategies, including strike price selection, position - building quantity, month selection, and volatility environment, also need to be carefully considered [1][10][11]. Summary by Relevant Catalogs 1. Gold Repeatedly Hits Record Highs: How to Express Views with Options? - **Market Situation and Drivers**: Since 2024, the gold price has repeatedly broken historical records. The main drivers are the shift in market trading logic to macro - variable pricing, high geopolitical risk premiums, and the global central banks' systematic increase in gold reserves. In 2025, changes in the global trade environment further pushed up the gold price [10]. - **Investors' Dilemma and Options' Role**: Existing gold - position holders face the choice between holding and profiting, while non - position investors are unsure about entering the market. Options provide a way to participate in the gold market and manage risks due to their non - linear return structure and risk - controllability [11]. 1.1 Hedge Strategies - **Protective Put Option Strategy**: For investors with gold positions, they can buy put options to build a "protective put option" strategy. For example, for the AU2512 contract, a put option with a strike price of 976 yuan/gram and a premium of about 40 yuan/gram can hedge the value loss of the spot position when the price falls below the strike price, and the maximum loss is locked at 40 yuan/gram [15]. - **Comparison with Futures Hedge**: Compared with futures hedging, option hedging retains the upside potential while providing downside protection. Option strategies also have advantages in capital efficiency, with lower capital occupation and no margin - call risk. However, the net income of option hedging may be lower than that of futures hedging when the price drops [17][19]. - **Bear Spread Strategy**: Investors can build a bear spread strategy by buying and selling put options to reduce the net premium cost. For example, buying a put option with a strike price of 976 yuan/gram and selling one with a strike price of 904 yuan/gram can reduce the net premium to 28.6 yuan/gram. This strategy can also be constructed with call options, and call - option - based strategies usually have an advantage in liquidity [22][31][32]. 1.2 Unilateral Strategies - **Buying Call Options**: For investors who are bullish on gold but have not built positions, buying call options can control risks. For example, for the AU2512 contract, a call option with a strike price of 976 yuan/gram and a premium of 38 yuan/gram has a maximum loss of 38 yuan/gram, and the break - even point is 1014 yuan/gram [36]. - **Bull Spread Strategy**: It can be constructed in two ways, but due to the lack of a portfolio - margin system in the Shanghai Futures Exchange, buying call options unilaterally is a better choice for capital - efficiency - oriented investors [42]. - **Selling Out - of - the - Money Put Options**: If investors believe that the gold price has limited upside but strong support, they can sell out - of - the - money put options to earn premiums. For example, selling a put option with a strike price of 904 yuan/gram can earn a premium of 11.4 yuan/gram. If the price drops below 904 yuan/gram, the investor can establish a long position at an effective cost of 892.6 yuan/gram [44]. 2. Key Factors of Gold Option Strategies 2.1 Strike Price Selection - **Analysis of Different Strike Prices**: Higher strike prices lead to a higher break - even point and a narrower potential return, but lower premiums. In a case from October 13 - 17, 2025, options with higher strike prices achieved better capital returns [48][49]. - **Dynamic Rolling Strategy**: To deal with the uncertainty of the end - price, investors can use a "dynamic rolling" strategy, which can balance profit - taking and risk - avoidance [53]. - **Liquidity Consideration**: When choosing strike prices, investors should consider liquidity. Trading volume and open interest are usually concentrated around at - the - money and some out - of - the - money integer strike prices [55]. 2.2 Position - Building Quantity - **Unilateral Strategy**: In unilateral strategies, the key is to control the notional principal exposure of option positions. A risk - budget method based on the notional principal is recommended [60]. - **Hedge Strategy**: For hedge strategies held to maturity, the equal - market - value hedge strategy is recommended. If the position is to be closed before maturity, the Delta - hedge strategy should be used. However, the dynamic Delta - hedge strategy is more suitable for market - makers and volatility traders [61][63][69]. - **Insurance Budget Model**: Some investors use an "insurance budget" model. They need to compare the overall risk exposure of different strike - price options. Higher - Delta and higher - Gamma hedge portfolios have different advantages [70]. 2.3 Month Selection - **Liquidity Consideration**: When choosing the expiration month, liquidity should be the primary consideration. The liquidity difference between odd - month and even - month options is smaller than that of futures. Near - month options can reduce capital costs, and investors should consider liquidity, holding period, and volatility characteristics [74]. - **Greek Letter Parameters**: Different expiration months have different impacts on Greek letter parameters. For example, the Gamma of at - the - money options near expiration increases significantly, and the Theta of at - the - money options shows an "acceleration effect" [78]. 2.4 Volatility Environment - **Selling Options in High - Volatility Environment**: The implied volatility of gold options has reached a historically high level, providing a good opportunity to sell options and short volatility. Selling options can capture the double benefits of time - value decay and volatility decline [84]. - **Volatility Smile and Term Structure**: The implied volatility of out - of - the - money put options is significantly higher than that of call options, reflecting higher demand for downside - risk protection. The near - month option volatility has risen faster, leading to a term - structure inversion, providing an opportunity for volatility - term arbitrage [85][88].

Group 1 - The core concept of options volatility strategy emphasizes the importance of analyzing volatility over the option price itself, as volatility is a critical indicator for investors when trading options [1] - Volatility can be categorized into implied volatility and historical volatility, with implied volatility reflecting market expectations of future price fluctuations [6][7] - The article outlines various volatility strategies, including long volatility strategies such as buying straddles and strangles, which are used when significant price movements are anticipated without a clear direction [3][4][6] Group 2 - A long straddle strategy involves purchasing both a call and a put option with the same strike price and expiration date, allowing for profit if the underlying asset's price moves significantly in either direction [3] - A long strangle strategy entails buying a call option with a higher strike price and a put option with a lower strike price, which is generally less expensive than a straddle and can yield high returns during significant price movements [4] - Directly purchasing volatility index futures, such as VIX futures, is another strategy employed when investors expect an increase in market volatility, allowing them to profit from rising volatility [4] Group 3 - The article also discusses short volatility strategies, where investors can profit from a decrease in volatility by selling options when volatility is expected to revert to its mean [7] - Historical volatility is calculated using past data, while implied volatility is derived from option pricing models, indicating market sentiment regarding future volatility [7] - The strategies discussed can be particularly effective during events that cause significant market fluctuations, such as geopolitical tensions or economic announcements [6][7]

Core Viewpoint - The article invites participants to the "First Global Yiyang Trading Forum" in Shanghai, focusing on uncovering excess returns in a volatile market environment in 2025, emphasizing the unique investment opportunities arising from China's market reforms and technological innovations [1][2]. Group 1: Macro Perspective - Experts will analyze the asset rotation rhythm under the divergence of global central bank policies and geopolitical risk pricing models [2]. - The forum will cover a framework for major asset allocation against the backdrop of narrowing China-US interest rate differentials [2]. Group 2: Stock Market Insights - A private equity leader with over 20 years of experience will reveal a quantitative identification system for industry rotation in high-volatility environments [2]. Group 3: Futures Market Analysis - Commodity futures experts will discuss trend-following opportunities amid global supply chain restructuring and risk position management strategies during extreme market conditions [2]. Group 4: Options Trading Strategies - Experienced traders will analyze arbitrage opportunities within volatility surface distortions and teach techniques for capturing cross-market volatility premiums [2]. - A practical workshop on "Multi-Asset Linked Trading" will be conducted, focusing on integrated hedging strategies involving stocks, futures, and options [2]. Group 5: Event Details - The forum is scheduled for May 24, 2025, at the Star River Bay Hotel in Shanghai, accommodating 1,000 participants [5]. - The event is organized by Super Trader and Fudan Qiushi Wealth Forum, with support from various financial institutions [4].