How many Options to hedge 1 E-mini

T

tamvik

Maybe dumb question
If I am long 1 ES mini futures contract how many PUTs
(options on futures) do I need to buy to protect my long position
in ES .
 
one put is equal to 100 shares assuming that it is far enough in the money to be made up only of intrinsic value.
I though the e-mini was = c. 800 shares.:confused:
 
Depends on the strike price and the Delta.
At the money puts have a .50 delta so 2 puts .50 x 2=1.00 would make you "neutral". ES options are not that active though.

Joe Barry
 
Originally posted by Mike777
one put is equal to 100 shares assuming that it is far enough in the money to be made up only of intrinsic value.
I though the e-mini was = c. 800 shares.:confused:
More...

I meant QQQ options not ES.:)
 
If you're looking for a 100% hedge, why not just sell your one ES contract and then re-enter the position when you would have lifted your hedge?
 
What I had in mind was, If 9/11 type incident should occur so
I would be protected. I understand how stock options work
Example 100 shares of XYZ = 1 Option contract of XYZ (one option is 100 shares of XYZ)
So if an option costs $3.00 I have to come up with $300 (100*$3.00=$300)
Now I am stuck here with E-mini Option.
If a e-mini option costs $15 at some strike price, how much money do I have to come up with to enter a trade?
As we know stops do not help in cases like 9/11.
 
Originally posted by tamvik
What I had in mind was, If 9/11 type incident should occur so
I would be protected. I understand how stock options work
Example 100 shares of XYZ = 1 Option contract of XYZ (one option is 100 shares of XYZ)
So if an option costs $3.00 I have to come up with $300 (100*$3.00=$300)
Now I am stuck here with E-mini Option.
If a e-mini option costs $15 at some strike price, how much money do I have to come up with to enter a trade?
As we know stops do not help in cases like 9/11
More...


OOPS Learning how to edit.
 
You must log in or register to reply here.
Back
Top