Core Viewpoint - The article introduces the "Bear Put Spread" strategy as a cost-effective way to bet on a moderate decline in stock prices, allowing investors to manage risk while reducing costs associated with buying put options [1][3]. Strategy Definition - The Bear Put Spread involves two actions: buying a higher strike put option and selling a lower strike put option with the same expiration date, which allows investors to benefit from a small decline in stock prices while minimizing initial costs [1][3]. Investment Significance - Compared to directly buying put options, the Bear Put Spread reduces the cost of the investment by using the premium received from selling the lower strike put to offset the cost of the higher strike put, thus lowering both the initial investment and the difficulty of achieving profitability [3][5]. - This strategy caters to two types of investors: those who are cautiously bearish and believe the stock will decline but not below a certain level, and those looking to control costs when buying put options is too expensive [3][5]. Profit and Loss Calculation - The break-even point for the strategy is calculated as the higher strike price minus the net premium paid. The maximum profit occurs when the stock price is at or below the lower strike price, while the maximum loss is limited to the net premium paid [5][9]. Practical Application - An example illustrates three investors with different strategies: one shorting the stock, one buying a put option, and one using the Bear Put Spread. The Bear Put Spread investor has a lower total expenditure and a more favorable risk-reward profile compared to the direct put buyer [7][9][14]. Scenario Analysis - Various scenarios are analyzed to demonstrate the performance of each strategy under different stock price movements, highlighting that the Bear Put Spread can outperform direct put buying when the stock price does not fall below the lower strike price [11][12][13][14]. Recommendations for Beginners - New investors are advised to avoid confusing strike prices, ensure options have the same expiration date, and calculate the break-even point accurately. The strategy is best suited for short-term speculation rather than long-term investments [17][18][19].

Group 1 - The term "underlying asset" refers to the basis of options trading, specifically in the context of 50ETF options, where the underlying asset is the 50ETF fund that tracks the SSE 50 Index, composed of the 50 largest stocks on the Shanghai Stock Exchange [1] - Each 50ETF options contract has a strike price and an expiration date, with the strike price being the predetermined price at which the underlying asset can be bought or sold, and the expiration date being the day the option can be exercised [2] - As a buyer of an options contract, there are two choices: to sell the contract for profit if the price has appreciated, or to exercise the option on the expiration date to buy or sell the specified quantity of the 50ETF fund [3] Group 2 - The price of 50ETF options contracts fluctuates significantly with the price movements of the underlying asset, the 50ETF, due to the inherent leverage in each options contract, which can amplify price changes [5] - Many investors engage in trading 50ETF options contracts, which are influenced by the price volatility of the underlying asset, leading to potential profits or losses depending on the direction of the market [5]

Core Viewpoint - Individual investors can participate in options trading, but there are specific requirements that must be met, summarized as "five have and one do not" [1] Group 1: Requirements for Individual Investors - **Have Assets**: Investors must have an average daily securities value and available cash balance of at least 500,000 RMB over the previous 20 trading days [2] - **Have Experience**: Investors need to have at least six months of trading experience with a securities company or a futures company, along with qualifications for margin trading or financial futures trading [4] - **Have Knowledge**: Investors must possess basic knowledge of options and pass relevant tests recognized by exchanges, understanding concepts such as strike price, premium, implied volatility, Delta, and Gamma [5] - **Have Simulation Trading Experience**: Investors are required to have recognized simulation trading experience in options [8] - **Have Risk Tolerance**: Investors must demonstrate the ability to bear risks associated with options trading, which is characterized by leverage and complexity [12] - **Do Not Have Bad Records**: Investors must not have serious bad credit records or any legal restrictions on engaging in options trading [12] Group 2: Exemptions and Special Conditions - **Exemption Conditions**: Certain conditions allow for exemptions from trading, funding, and testing requirements, such as being a professional investor or having a record of trading futures or options for at least 50 days in the past year [13] - **Additional Exemptions**: Investors who have previously opened accounts with other companies for the same type of trading or already possess options trading permissions may also qualify for exemptions [15] Group 3: Important Considerations - **Understanding Risks and Returns**: Investors should fully understand the risk and return characteristics of options trading, which has leverage effects and high risks [16] - **Choosing a Trading Platform**: It is essential for investors to select a reputable trading platform with transparent rules and reasonable fees [16] - **Developing a Trading Strategy**: Investors should create a trading strategy based on their risk tolerance and investment goals to avoid excessive trading and following trends blindly [16] Group 4: Definition of Options - **Definition**: Options are financial derivatives that grant the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time frame, while the seller must fulfill the obligation [17]