Hedging Design Of Individual Investors Using 50ETF Option

In February 19,2015, Shanghai Stock Exchange listing of 50ETF option transactions has opened the prelude to the development of China’s options market.50ETF option is the first listed option product to fill the gaps in the stock exchange. Option, as a kind of nonlinear financial derivatives, has the unique advantages and it has a strong hedging function. In condition that individual investors is the majority of the China’s securities market, if the individual investors participate in the 50ETF options trading for their portfolio hedging, hedging can have contributed to China’s financial market healthy, orderly and stable development. Based on the individual investor’s point of view, this paper formulates the option hedging strategy that individual investors faced on the actual situation. Next, this paper preliminary the hedging program.The first chapter of this paper mainly discusses the benefits of investors to choose 50ETF, and analyzes the feasibility of the whole. The second chapter and the third chapter are the core parts of this thesis. On the basis of the first chapter, the second chapter describes the common investment strategy of investors, using the trend line theory, form theory and the theory of moving average as the basis of the design of the hedging plan. The third chapter began to use the 50ETF spot market trend in 2015 to simulate the design of the hedging program, which in the fourth chapter based on the results of simulation to evaluate the hedging scheme.The innovation of this paper lies in the prior academic analysis of hedging are for institutional investors use of complex mathematical models, and from the perspective of individual investors to carry out the analysis of less, combined with actual disk encountered situation analysis of less and less. This paper does not use a complex mathematical model to be discussed, but the practical application of the point of view, with a strong practical value.