When Are 2021 Put Options Available and How to Trade Them
For investors and traders interested in leveraging the 2021 put options, it's essential to know precisely when these options become available. This article provides comprehensive insights into the availability of 2021 put options and the best practices for trading them.
Introduction to 2021 Put Options
Put options on the 2021 expiration date are a key tool for investors looking to hedge against potential declines in the stock market or specific securities. These options offer the right, but not the obligation, to sell underlying assets at a predetermined price (strike price) before or on the expiry date.
The Current Status of 2021 Put Options
In recent discussions, it was mentioned that the June and December 2021 put options for stocks and futures are currently trading, albeit with limited liquidity. This is not unusual as the options might regain liquidity as we approach the expiration dates.
Check Current Availability
Visit the Cboe Global Markets website for the most up-to-date information on available put options. Note that the Securities and Exchange Commission (SEC) observes maintenance days when important market data is updated. During these periods, certain services might be unavailable. Refer to the OCC (Options Clearing Corporation) official site for maintenance updates.Understanding LEAPS: Long-Term Equity Anticipation Securities
LEAPS, or Long-Term Equity Anticipation Securities, are available on a specific schedule set by regulatory bodies. LEAPS provide extended option expiration dates, giving traders more time to position themselves in the market.
According to the OCC, 2021 LEAPS will be available on Monday, September 17, 2018, marking the beginning of their trading period. This availability is critical for investors looking to take long-term positions or to hedge against significant market movements.
Expiration Calendar for LEAPS
The expiration calendar for LEAPS is structured around quarterly cycles:
Expiring in January: Listed on the Monday of expiration in September. Expiring in April: Listed on the Monday of expiration in October. Expiring in July: Listed on the Monday of expiration in November. Expiring in October: Listed on the Monday of expiration in December.Understanding these cycles is crucial for aligning your trading strategies with the correct expiration dates.
Best Practices for Trading 2021 Put Options
Here are some best practices for trading 2021 put options:
Assess Market Conditions: Stay informed about market trends and macroeconomic factors that might affect stock prices. Understand Risk: Put options contain inherent risks, and it's important to consult with a financial planner to determine if they align with your risk tolerance and investment goals. Evaluate Market Liquidity: High liquidity improves the ability to enter and exit positions at desired prices. Stay Updated: Regularly check the Cboe website for the latest trading information and maintain awareness of market news and regulatory updates. Use Stop-Loss Orders: Implement stop-loss orders to protect against significant losses if the market moves unfavorably.By following these guidelines, traders can maximize their chances of success in the volatile world of put options trading.
Conclusion
Trading 2021 put options requires a solid understanding of the underlying markets, specific trading strategies, and the regulatory framework. By adhering to best practices and staying informed, investors can navigate the complexities of put options trading effectively.
For tools and information, refer to the Cboe Global Markets website and the official OCC site. Happy trading!
Disclaimer: This information is for educational purposes only and does not constitute a solicitation or offer to buy or sell any security. Derivatives, including options, involve a high degree of risk and are not suitable for all investors. It is essential to consult with a financial advisor before making any investment decisions.