ES vs SPY

How much SPY will go up if ES e-mini goes up 1 point.
Is it something like 10cents or it is different.

Thanks for any reply.

 

you do have charts right???

 

Two different animals. The esmini or esh8 is 1/5 of the old SP500 contract (however es mini has most of the volume). In other words it is a future with an expiration date. SPY is an amex traded etf which is like a stock, pays dividends, etc. Spy and es are highly correlated of course but there are arbs. The easy way to think about it is price per tick, or how much per tick do I want to win/lose risk. If you buy 100 shares of spy you will lose 100 dollars per point. In es you lose 12.50 per tick so 2 contracts and you lose 100. The short answer is 2 contracts of es is roughly equivalent dollar wise to 100 shares of spy. Someone correct me if I am wrong. You should know this cold before you trade these products.

http://www.indexarb.com/

http://www.cme.com/trading/prd/equity/emini-sp500.html

http://www.amex.com/etf/prodInf/EtPiOverview.jsp?Product_Symbol=SPY

 

Currently, one ES contract moves about the same as 555 shares of SPY.

ES ATR = 26.64 X $50 per contract = $1332

SPY ATR = 2.40 X $1 per share = $2.40

$1332 / $2.40 = 555 shares SPY

 

Its 500 shares of spy to 1 es contract. This would be a near perfect hedge. One big spu = 2500 shares. jim

 

Thanks for the replies.

 

Dear viewers, tonight's edition of Who can do 3rd grade math? we will answer the question, Just how many SPY shares are equivalent with 1 ES contract?

Let's see the competitors first:

Kinggyppo: He started with an almost logical explanation and come up with 100 shares / 2 contracts.That is 50 shares.

ESS: His convoluted math is a bit too much for me, but his 555 shares result is really brilliant!

Jim C: He simplyfied ESS' math and came up with 500 shares.

And because 1 Spy points (dollar) move is equivalent with 10 ES points move, which is $500, you need 500 shares to make the same amount as you would with 1 ES contract.

So the winner is: Jim C!! Congratulations!!!

 

So my original question that 1 ES point is equal to 10 cents on SPY is correct

 

you need to be specific. When you say es most (older) traders will assume the full contract. I assume that you mean the esmini which is $12.50 per tick. Spy is .01 per tick. I have a headache now.

 

I did say ES emini in my original post. Thanks