How to short the S&P using options? Day & swing puts

Overnight said:
K, let us test your meddle.

I am long the MES Dec contract at 4510. I believe that I will be in profit by Last Trade Date, which is Dec 16th (17th technically, but volume-wise we want out by December 9th or 10th to not suffer a widening bid/ask spread on the future contract.)

Is there a way for me to buy or sell a simple call/put with that expiry date, to either mitigate a loss or capture the potential gains? What would that be?
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It sounds like he's a day trader. You live in a different world.
 
SPX Options Trader said:
Assuming, someone can time the daily S&P chart well, very well....how much can they make of a % return trading futures instead of options?

I'm completely new, ignorant, to futures. My game, my experience, my expertise are only options.
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I think the % return would depend on how much the broker required to day trade ES (S&P Futures e-Mini). A lot of brokers only require $400 or $500 margin to day trade one ES contract. Some require 25% of initial, which would be a little over $3k.

SPX Options Trader said:
Options are explosive, is all I'm saying...if someone has good/great/expert timing. Everything else, only delivers marginal returns.

Day in, Day out, everyday,...if someone can time the daily S&P chart...that's the Holy Grail. Combined with leverage/options.
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Index futures are explosive, as well.

Let's say you had good timing with ES today and at 1305 ET you went short one contract at 4454. Then, at 1430 ET, you closed your short trade at 4438 for a 16 point gain. The multiplier for ES is $50, so you would have made $800.

If you were trading through a broker that only required $400 or $500 margin and you just made $800, could you duplicate that with options? With $3k available for premium, I'm guessing, yes. But with only $400/$500 available for premium, I'm guessing, no.
 
FWIW,he stated(somewhere) that he only trades ATM...
He did not say if he trades 2 ATM options instead of stock or one option..or for that matter 10..

My guess is he trades delta neutral to equivalant stock position,which is basically saying long straddless are a better bet than short straddles..



destriero said:
lol intraday?

WTF does timing have to do with magnitude?
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taowave said:
FWIW,he stated(somewhere) that he only trades ATM...
He did not say if he trades 2 ATM options instead of stock or one option..or for that matter 10..

My guess is he trades delta neutral to equivalant stock position,which is basically saying long straddless are a better bet than short straddles..
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ATM options with 0-DTE? This is where I fall down on options. The most basic concepts like that.

@SPX Options Trader We need your guidance here. Please give me an option with options on my basic question, which should be able to be salvaged with basic options trades.
 
ondafringe said:
If there is a solution for you, it will probably involve crawling into bed with a lot of Greeks.
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Nope, no Greeks allowed. SPX does not go that complicated. I want a simple solution to a simple problem, because that is what SPX says he does.

All he does is simply buy/sell calls and puts. So with just ONE LITTLE position like an MES long trade, can he come up with a sort of hedge?

I know @destriero already has an answer in his head, But this is not about him. This is about SPX who is claiming that simple buys/calls are a superior method of trading options.
 
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