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 .
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.
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
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?
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.