Hope you're not short ES

nkhoi · May 1, 2003

Quote from lundy:

heres my theory on it:

the cme is manipulating the market by closing the minis, and using the pit to drive the market up.

stocks will follow the pit, and somebody is unloading big into stocks...

i think by the time the minis open, we'll be right back where we started.

the longs and the shorts will miss out on all that action.

by the time the minis open... short get squeeze first then ....we'll be right back where we started.

Gordon Gekko · May 1, 2003

If you were short ES when this happened, what would have been the best thing to do; buy as much SPY as you can (equal to your ES position, if possible)?

Thanks

macal425 · May 1, 2003

Quote from Gordon Gekko:

If you were short ES when this happened, what would have been the best thing to do; buy as much SPY as you can (equal to your ES position, if possible)?

Thanks

Yes GG. Buy 500 SPY per ES contract.

taodr · May 1, 2003

Put up $45,500 per ES at that time.

Gordon Gekko · May 1, 2003

OK, so say I was short 1 ES contract. The best thing to do would be to buy 500 SPY. However, with an account the size of mine, I doubt IB would let me buy much SPY. So then I guess I would just have to get screwed?

p.s. If I was short 1 ES, how could I calculate how much SPY IB would let me buy (if any)?

bungrider · May 1, 2003

Quote from Gordon Gekko:

OK, so say I was short 1 ES contract. The best thing to do would be to buy 500 SPY. However, with an account the size of mine, I doubt IB would let me buy much SPY. So then I guess I would just have to get screwed?

SPY options are cheaper in terms of capital

shyhh · May 1, 2003

Quote from Gordon Gekko:

OK, so say I was short 1 ES contract. The best thing to do would be to buy 500 SPY. However, with an account the size of mine, I doubt IB would let me buy much SPY. So then I guess I would just have to get screwed?

Someone suggested covering with YM or maybe the ESTX50 might be a workable solution

DT-waw · May 1, 2003

Quote from shyhh:

Someone suggested covering with YM or maybe the ESTX50 might be a workable solution

Hmmm Eurex is closed today.

shorty_mcshort · May 1, 2003

SPY options are cheaper in terms of capital [/B][/QUOTE]

Say for instance I was short 1 NQ contract and I wanted to hedge with options. There are two different ways to buy the calls. I could either buy the QQQ calls. For example, if I shorted 1 NQ @ 1100.00 then $20 x 1100.00 = $22,000.

If QQQ was trading at $27.50 at the time then $22,000/27.50 = 800 shares or 80 call contracts? Is this right? What about the options in the NQ? Are there any? If so how many calls would I need to buy in order to hedge 1 contract?

I wasn't short but this is telling me that I need to have a plan in case it ever does happen to me.

shorty_mcshort · May 1, 2003

Quote from shorty_mcshort:

SPY options are cheaper in terms of capital

Say for instance I was short 1 NQ contract and I wanted to hedge with options. There are two different ways to buy the calls. I could either buy the QQQ calls. For example, if I shorted 1 NQ @ 1100.00 then $20 x 1100.00 = $22,000.

If QQQ was trading at $27.50 at the time then $22,000/27.50 = 800 shares or 80 call contracts? Is this right? What about the options in the NQ? Are there any? If so how many calls would I need to buy in order to hedge 1 contract?

I wasn't short but this is telling me that I need to have a plan in case it ever does happen to me. [/B][/QUOTE]

whoops I meant I would need to buy 8 call options instead of 80