Cost of carrying futures

Ouch!

 

Lol, sorry, thought it would be funny in the context of the thread from yesterday or day before. But look at it this way...Old Man Morse also means wisdom with age!

 

Just kidding, I became a grandfather last year, you can call me old man Morse.

 

Thank you Robert, you are always very helpful.

 

Are you saying that I need to pay Dividend cost if I short a ES?

 

Thank you for a beautiful explination.
So you think I can buy a put option on MAR 2017 EXP and long 1 ES Contract and margin requirement will be less than 5.2K

 

I read the threads title and the eastern warrior's post. I now see that OP question has nothing to do with the thread title

 

Yep, it is an unintentionally confusing topic.

 

No, it does not work this way. The margin requirement on the ES contract will not be lowered with your option "hedge".

 

Since @Overnight said in the beginning I need to maintain 5.2K if I'm not hedging, I thought this could be less if I had some options. Thank you for clarifying this. I am still learning best way to learn all tips and tricks on Futures.

From last 4 months I only made 2K, by trading 1 ES at a time. Not sure if it is worth my time or not but still planning to give it some more months.

I still remember when I made my first trade on ES, my PL was like -200 and for a sec it went to -4K and bounced back to -200 (happened in a flash while staring on screen), but later realized that was a bug in IB which did this to me.


Thank you all ET for helping me out to learn better.