Quote from ivanbaj:
Using options will make you guess the future volatility. You can count your deltas but if you are wrong about the volatility your result will vary.
Also when you are using options you need to pay close attention to the gamma. If the gamma gets too big then the delta can get out of control in no time.
To avoid the Greeks you can build your own index buy buying the appropriate quantities of s&p 500 companies shares or hedge yor s&p contract by offsetting with number of shares or another index like the ym or nq or any other correlated index.
Also a calendar spread in the futures contracts might work.
The cost and complexity of managing spreads and hedges might be high for you.
It seems you need more capital.
