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An option is a contract that represents the right to buy or sell a financial product at an agreed-upon price for a specific period of time.
You can typically buy and sell an options contract at any time before expiration.Options are available on numerous financial products, including equities, indices, and ETFs.
Options are called "derivatives" because the value of the option is "derived" from the underlying asset.
Owning an option, in and of itself, does not impart ownership in the underlying security, nor does it entitle the holder to any dividend payments.
Options allow you to control a large amount of assets with a relatively small amount of capital, making options an efficient way to maximize your investment returns.
Risk Hedging
Options can be used as a tool to protect your investment portfolio. By holding corresponding put options, you can profit from a stock market decline, offsetting your losses
Flexibility
Regardless of whether the market is rising, falling, or range-bound, you can use different types of option contracts to adapt to various market expectations and objectives, such as protective calls or bull call spreads.
Risk Management
The risks in options trading are manageable. Options buyers only pay the option premium, limiting their potential losses and avoiding unlimited downside risk from market fluctuations.
uSMART Your Preferred
Platform for US Options Trading
Comprehensive Portfolio
Invest in a wide range of options, including stocks, ETFs, and popular index options in the US options market.
Diverse Options Strategies
Supports short selling options, as well as strategies like single-leg options, covered calls, and vertical spreads.
Smart Orders
Provides intelligent order types for automated monitoring and execution, including grid orders to average down trading costs.
Low Trading Fees
Low commission, with platform fees as low as $0.3 per contract.
Real-time Options Data
Lightning-fast updates on US options and index option quotes.
Intuitive and User-friendly Interface
Customizable options chain with clear display of fundamental data, quotes, and distinct Call/Put contrast.
No Minimum Order Fee for
US Options Commission as low as US$ 0.1 per contract*
Options are primarily divided into two types: Call Options and Put Options. A Call Option grants the holder the right to buy the underlying asset at a specific price known as the strike price, while a Put Option grants the holder the right to sell the underlying asset at a specific price. Additionally, there are other variations of options such as European Options and American Options, which differ in terms of exercise periods and methods.
How to trade US stock options?
The trading process for options is similar to stock trading. Once you input the quantity and price, you can place the order for trading.
Choosing "Buy" represents buying to open an options position, and choosing "Sell" represents selling (shorting) options. If you already hold long or short positions in options, you can also close the positions by selling or buying back the contracts.
What is the minimum trading unit for US stock options?
As options are contracts, the trading unit is one contract.
In general, one options contract represents 100 shares (though corporate actions may lead to non-standard contract sizes).
What are the trading hours for US stock options?
The trading hours for US stock options align with the trading hours of US stocks. The specific times are as follows (in Beijing time):
Daylight Saving Time: 21:30-04:00
Standard Time: 22:30-05:00