Emini Swing Trade

Discussion in 'Strategy Development' started by savage, Dec 29, 2003.

  1. savage


    My newest and next greatest idea involves swingtrading either ES,NQ, or YM instead of daytrading. Being much more careful than in my younger years, I wish to identify my risk at the inception of the trade. To avoid technical problems and overnight large moves, I will not be using stops. Rather, I will purchase options to hedge my bet on the minis.

    My question regards the proper hedge technique. If I decide to short ES at current levels say 1110 and buy SPX call options for Jan 1110 at $14, how many option contracts do I need to buy to set my total risk to 14 ES points?

    Comments and suggestions are appreciated.