value of one contract

[Mdtbyk]

hello
how much es options i need to cover a es future contract?

 

[stevegee58]

You have i the wrong way around. 1 ES option controls 50 ES futures contracts.

 

[Mdtbyk]

so how do i hedge one futrue contract?

 

[stevegee58]

You could use 500 shares of SPY per contract. If you're long 1 ES, go short 500 SPY.
Then again, why not just close the ES since it's mathematically the same as hedging it.

 

[Mdtbyk]

right so thats why i would want to buy an option but 50 es futrue contracts is way out of my budget. maybe SPY options?

 

[H2O]

You have i the wrong way around. 1 ES option controls 50 ES futures contracts.

I suggest you check your facts....

An option on an emini future is exactly that: the option to buy or sell 1 futures contract.

http://www.cmegroup.com/trading/equ....html?optionProductId=138#optionProductId=138

 

[Ryan81]

You have i the wrong way around. 1 ES option controls 50 ES futures contracts.

You should take a look at: http://www.cmegroup.com/trading/equity-index/us-index/e-mini-sandp500_contractSpecs_options.html

Specifically, the section where it says: "Contract Unit: One E-mini S&P 500 futures contract"

 

[stevegee58]

I admit I don't trade these. What's the 50 mean in the multiplier field then?

 

[stevegee58]

Oops never mind. The multiplier on the ES contract is 50 also.
I was wrong. It's 1:1

 

[H2O]

I admit I don't trade these. What's the 50 mean in the multiplier field then?
View attachment 170600

Every point change in the eMini future represents value of $50. (i.e. a 50x multiplier)
If you look up the full-size S&P futures contract you will see a multiplier of $250 (i.e. every point change in the full-size futures contract reflects a value of $250).