Mr. Wei first elaborated the rebalancing of crude oil from the perspectives of supply/demand, inventory and cost. He forecast the oil trend in short, interim and long term, and pointed out that 2016 would be a turning year, when the oil supply glut might gradually tend balanced and oil price was expected to trend up in 2017. Under this circumstances, outlook for PTA September contract was bearish and players should be cautious when prices exceed 4,800yuan/mt.

Then, Mr. Wei iutroduced option in terms of definition, benifit structure and relationship with futures. He demonstrated that option is an OTC investment tool where losses are manageable, capital occupation is small, profit is stable and risk management cost is low.

Lastly, Mr. Wei shared his suggestions on the practice of option, e.g. buying put option, portfolio of put options and collar options portfolio.