es future options

[Mdtbyk]

HELLO EVERYONE

I have one ES march 17 short at 2325 which is losing money today
i was thinking to sell a call for 2325 expiring march 17 which will cover me some losses
i also have one put for that i bought to hedge at 2320 is this good idea? what would you guys do?

 

[wintergasp]

Buy 35 lots at whatever price and wait until this 10 years long bullish market pays you back (so... like... 2 days?)

 

[Mdtbyk]

Buy 35 lots at whatever price and wait until this 10 years long bullish market pays you back (so... like... 2 days?)

how does that help me?

 

[wintergasp]

1) You're asking what we would do
2) This would make you earn money, hence solving your problem which is that you're losing money (correct?)

(sorry I thought you had 17 lots, so buy 2 lots not 35)

 

[Ryan81]

I think he meant March 17th, not lots... but who knows. for all we know it could be a papertrade account

 

[Mdtbyk]

I think he meant March 17th, not lots... but who knows. for all we know it could be a papertrade account

probably would be better if it was paper trading as i am not to good in it
its one es future short at 2325

 

[Handle123]

probably would be better if it was paper trading as i am not to good in it
its one es future short at 2325

Since you sound lost, I would get out of positions before you have no account, then spend few years to learn how to trade.

 

[tommcginnis]

Plant a butterfly on top of it.
-- Minimal cost.
-- LOTS of flexibility afforded.

Sell it off or build it out as your (further, calmed, clarified) mind dictates.

But remember -- as an option seller, the battle you face is

δ + v ≈ Θ

and when δ and/or v ≥ than that oh-so-reliable tick o'time, your position will..... "redden."

 

[Robert Morse]

HELLO EVERYONE

I have one ES march 17 short at 2325 which is loosing money today
i was thinking to sell a call for 2325 expiring march 17 which will cover me some losses
i also have one put for that i bought to hedge at 2320 is this good idea? what would you guys do?

I'm not following your logic. If you are short 1 ES future at 2325, we are trading at 2360.50 right now. That is a loss of 35.50 points*$50= a loss of $1775.00. There is nothing you can do to make that go way, unless the ES drops back down. Selling 1 call would just make you shorter. Buying a put when you shorted the future was not a hedge and just added to the short delta.

Unless there is a typo here, I expect the best thing you can do is consider learning more about options before you increase your risk.

 

[tommcginnis]

I'm not following your logic. If you are short 1 ES future at 2325, we are trading at 2360.50 right now. That is a loss of 35.50 points*$50= a loss of $1775.00. There is nothing you can do to make that go way, unless the ES drops back down. Selling 1 call would just make you shorter. Buying a put when you shorted the future was not a hedge and just added to the short delta.

Unless there is a typo here, I expect the best thing you can do is consider learning more about options before you increase your risk.

I don't think any of us wanted to go there. Hooo boy. Without putting any thought into it, "Sell a nearby put and roll that puppy forward, nibbling away with put premium til you're out" comes to mind.....