how to hedge with options intraday

D

Dantheman

example:
long 3 ym contracts

exchange goes down...

question:
how would you hedge this position with option(s)?
doesn't necessarily need to be a full hedge, but just to take some of the potential heat off, if it started to move hard against you?

all replies welcome.
 
IF CBOT goes down, then I am assuming the YM options go down. In that case, I believe the DIA options trade thru the CBOE and you could determine how to offset 1:1, perhaps with some ITM puts against your long 3 YM futures. Might as well just keep the DIA puts on your screen and figure out the conversion and multiplier between DIA to YM.
 
sell 1500 dia....

1 ym = 500 dia

dia more accessible than dia or djx options...

i beleive the dia and djx options are all pit traded
 
Quote from chiguy:

sell 1500 dia....

1 ym = 500 dia

dia more accessible than dia or djx options...

i beleive the dia and djx options are all pit traded
More...

also,

need more information, such as what your account size is that you will commit to the hedge, not your balance.

another spin on chiguy's answer is hedge the YM futures with DIA index options in the opposite direction, if you're willing to carry the hedge cost
 
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