ES trading Q's

Discussion in 'Index Futures' started by Whistlingleaf, May 14, 2010.

  1. I'm just looking into ES trading - I've been day trading ETF options mostly SPY (2-3 months out) for awhile and doing well enough, but I'd like to at least look at trading ES.

    When going long ES do you guys hedge by owning SPY puts ? Is there an equivalent ratio for that ? Like owning 10 SPY puts for 1 ES contract ?

    I'm not sure I have the right discipline to trade ES as I tend to stick with a position and will continue to scale in by buying more calls or puts and will hold overnight and upto about 1 week.

    The 1:1 delta is enticing as is being able to trade 24 hours a day - I realize I'd have to keep shorter timeframes.
  2. Sorry no one answered your question.

    If you want to scale in then you have to make sure you can handle the ES size. margins are $4500 but you also have to control risk. One big move could wipe you out if you have a big position on.

    I don't hedge anything. Too complicated. I want to be able to get in and out whenever I want just click a button and it's done. no slippage. no problems.