If you were short ES when this happened, what would have been the best thing to do; buy as much SPY as you can (equal to your ES position, if possible)? Thanks
OK, so say I was short 1 ES contract. The best thing to do would be to buy 500 SPY. However, with an account the size of mine, I doubt IB would let me buy much SPY. So then I guess I would just have to get screwed? p.s. If I was short 1 ES, how could I calculate how much SPY IB would let me buy (if any)?
SPY options are cheaper in terms of capital [/B][/QUOTE] Say for instance I was short 1 NQ contract and I wanted to hedge with options. There are two different ways to buy the calls. I could either buy the QQQ calls. For example, if I shorted 1 NQ @ 1100.00 then $20 x 1100.00 = $22,000. If QQQ was trading at $27.50 at the time then $22,000/27.50 = 800 shares or 80 call contracts? Is this right? What about the options in the NQ? Are there any? If so how many calls would I need to buy in order to hedge 1 contract? I wasn't short but this is telling me that I need to have a plan in case it ever does happen to me.
Say for instance I was short 1 NQ contract and I wanted to hedge with options. There are two different ways to buy the calls. I could either buy the QQQ calls. For example, if I shorted 1 NQ @ 1100.00 then $20 x 1100.00 = $22,000. If QQQ was trading at $27.50 at the time then $22,000/27.50 = 800 shares or 80 call contracts? Is this right? What about the options in the NQ? Are there any? If so how many calls would I need to buy in order to hedge 1 contract? I wasn't short but this is telling me that I need to have a plan in case it ever does happen to me. [/B][/QUOTE] whoops I meant I would need to buy 8 call options instead of 80