ES Trading with Futures Options?

Discussion in 'Options' started by QuantWizard, May 5, 2013.

  1. Hi all,

    I currently have a working automated ES trading system that trades on a daily basis (only intraday). Would it make sense to replace the actual futures trades with futures options trades instead, and exercise the option (if favorable outcome) or offset the option (if not favorable outcome) upon receiving the next (opposite) trading signal? In other words, instead of losing on the decline in value of the underlying futures contract, instead losing just the options premium?
     
  2. "How much time you got?"
    No, not just for an answer, but more in terms of trade duration -- *which* "day" are you trading?
    In GREEK terms, is your expected gain off delta larger than your *known* loss off theta?

    "Ahhhh!"
     
  3. no
     
  4. Lucrum

    Lucrum

    NO
     
  5. No ... intraday won't work.
     
  6. Josef K

    Josef K

    No, you'd lose a lot on the option bid-ask spread.
     
  7. Yet another brilliant thread. Trading intraday and exercising the ES options. Yeah, do it bro and let me know what you're trading before you exercise.