How many Options to hedge 1 E-mini

Discussion in 'Index Futures' started by tamvik, Jun 21, 2002.

  1. tamvik

    tamvik

    Maybe dumb question
    If I am long 1 ES mini futures contract how many PUTs
    (options on futures) do I need to buy to protect my long position
    in ES .
     
  2. LadyLuck

    LadyLuck

    One
     
  3. tamvik

    tamvik

    LadyLuck
    Thanks alot
     
  4. Mike777

    Mike777

    one put is equal to 100 shares assuming that it is far enough in the money to be made up only of intrinsic value.
    I though the e-mini was = c. 800 shares.:confused:
     
  5. josbarr

    josbarr

    Depends on the strike price and the Delta.
    At the money puts have a .50 delta so 2 puts .50 x 2=1.00 would make you "neutral". ES options are not that active though.

    Joe Barry
     
  6. Mike777

    Mike777

    I meant QQQ options not ES.:)
     
  7. If you're looking for a 100% hedge, why not just sell your one ES contract and then re-enter the position when you would have lifted your hedge?
     
  8. tamvik

    tamvik

    What I had in mind was, If 9/11 type incident should occur so
    I would be protected. I understand how stock options work
    Example 100 shares of XYZ = 1 Option contract of XYZ (one option is 100 shares of XYZ)
    So if an option costs $3.00 I have to come up with $300 (100*$3.00=$300)
    Now I am stuck here with E-mini Option.
    If a e-mini option costs $15 at some strike price, how much money do I have to come up with to enter a trade?
    As we know stops do not help in cases like 9/11.
     
  9. tamvik

    tamvik


    OOPS Learning how to edit.
     
  10. If the emini option cost 15 it means 15 pts which is for ES 15*50$=750$...
     
    #10     Jun 21, 2002