Is the delivery date the finish line for investors?
Options delivery provides an important price discovery mechanism for the market, and many retail investors are still unclear about what options delivery is.
On the delivery date, both long and short positions will be forced to close at the current market price, and traders can open positions again. Buying and selling operations can still be conducted at any time before the delivery date, not just after delivery. When the contract reaches the delivery date, it will be settled at a specific point on the platform, and the positions held will be closed at the delivery price. The unrealized gains and losses will be converted into realized gains and losses, and the realized gains and losses will be converted into the account balance after deducting the profit and loss difference of the contract.
Options delivery has a certain impact on the market. For example, cash settlement has no direct impact on supply and demand in the spot market, while physical delivery may increase demand or supply due to exercise; institutional market makers may adjust their positions before delivery, which could push prices up or down; market volatility may increase before delivery, trading volume may decrease, and prices may fluctuate within a narrow range. After delivery, uncertainty is lifted, and funds re-enter the market.
For retail investors, the most important point is whether options delivery is a bullish or bearish factor. Currently, both domestic and foreign indices have fallen, with only gold and silver remaining strong, showing independent trends.
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