what about on "200 lot bull position in NDX/short futures against. Max gain of 2.4 on Feb4 and 3.3 terminal." what does that mean?
Get long
- Thread starter destriero
- Start date
what about on "200 lot bull position in NDX/short futures against. Max gain of 2.4 on Feb4 and 3.3 terminal." what does that mean?
200 contracts which he has hedged. If the naz takes off he makes $2.40/contract by Feb 4. If he keeps it open and the naz stays up, he makes $3.3/contract at expiration.
It's a poor correlation to NDX. MSFT much bigger impact than TSLA. GOOGL and AMZN are the drivers next week. TSLA's had huge deliveries in the last quarter.
Last edited:
2.4 mil. It's 200 lots of NDX (spread). That's truly best case on LTD and terminally it's a max of 3.3, but I won't get close to that, even assuming a 15,200 pin, as there would be residual value on the Feb4s on last trading day and I won't want to carry the risk of the other tenors once the Feb4 leg goes off.
I for one hope you make your target, because I am a perma-bull, as you probably know. Just a really shitty one that cannot understand the complexities of hedging FOPS.
The only time a pin is possible (pin = terminal value) occurs on serial expirations that settle to cash at the open on Friday (Thursday as LTD).
Step 1 is to understand what dest says at least half the time. I'm currently at 5%.
I understand what he is saying at a 40% level.
https://www.elitetrader.com/et/threads/get-long.363639/page-8#post-5530423
He had a huge position looking for that 14150 target. He did not see it at the time, cut it, and re-positioned.
He is a better trader than I, but I do understand one thing...He thrives in this high IV-type market. It's like a field of nectar for him, where bees don't sting him...They ask to be stung by him.
Man you're smart.
This is an incorrect assumption. If I was smart, I would he hedging my open futures trades with FOPS. Since I am not doing that, because I do not understand how to, I am a dumbass.