Really stupid question

Discussion in 'Options' started by nodelta, Mar 19, 2004.

  1. nodelta


    Hey all.

    I'm embarrased to ask this, because i should know better, but...

    Which underlying futures contract is the ES March Options deliverable against?

    I'm watching the ES Mar 1135 put, which is at parity, trade at a premium matching it's intrinsic value against the Jun Contract.

    Shouldn't that option trade at intrinsic against the March Future?

    Thanks in advance,

  2. nodelta


    I'm trying to hedge it with the underlying, but don't want to do so using jun if i'm assigned on the march.

  3. nodelta


    That would make sense, but i'm curious why the bids/asks are moving in tandem with the jun contract.
  4. nodelta


    Thanks for the response, it's clear now.

    Although, I still don't know why the option is still trading when the underlying is off the board.
  5. ktm


    Mine are not moving. June would be a fine hedge. March will settle in cash over the weekend.
  6. nodelta


    Wasn't the settlement price already detemined on the opening prints?

    What would be the point of hedging in this case?
  7. ktm


    You were the one thinking of hedging. I was just saying that June would work as well as March if you had anything that still needed to be hedged.
  8. nodelta



    I Misunderstood.

    IB was adjusting my avail. margin based on the intrinsic value of the March option against the June Future.

    Thanks for the response.
  9. ktm


    It is confusing. I had some March 1110 (sold) puts that were safe based on the Friday opening settlement, yet in my account window, they continued to lose value all day Friday.

    The first time this happened, I didn't know what the hell to make of it.
    #10     Mar 22, 2004