Really stupid question

N

nodelta

Hey all.

I'm embarrased to ask this, because i should know better, but...

Which underlying futures contract is the ES March Options deliverable against?

I'm watching the ES Mar 1135 put, which is at parity, trade at a premium matching it's intrinsic value against the Jun Contract.

Shouldn't that option trade at intrinsic against the March Future?

Thanks in advance,

-nd
 
Quote from nodelta:

Which underlying futures contract is the ES March Options deliverable against?
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I'm trying to hedge it with the underlying, but don't want to do so using jun if i'm assigned on the march.

-nd
 
Quote from nodelta:

That would make sense, but i'm curious why the bids/asks are moving in tandem with the jun contract.
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Thanks for the response, it's clear now.

Although, I still don't know why the option is still trading when the underlying is off the board.
 
Quote from nodelta:

That would make sense, but i'm curious why the bids/asks are moving in tandem with the jun contract.
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Mine are not moving. June would be a fine hedge. March will settle in cash over the weekend.
 
Quote from ktm:

Mine are not moving. June would be a fine hedge. March will settle in cash over the weekend.
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Wasn't the settlement price already detemined on the opening prints?

What would be the point of hedging in this case?
 
You were the one thinking of hedging. I was just saying that June would work as well as March if you had anything that still needed to be hedged.
 
Quote from ktm:

You were the one thinking of hedging. I was just saying that June would work as well as March if you had anything that still needed to be hedged.
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Right.

I Misunderstood.

IB was adjusting my avail. margin based on the intrinsic value of the March option against the June Future.

Thanks for the response.
 
It is confusing. I had some March 1110 (sold) puts that were safe based on the Friday opening settlement, yet in my account window, they continued to lose value all day Friday.

The first time this happened, I didn't know what the hell to make of it.
 
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