thanks guys. actually that was more of a rebalancing trade due to Katrina. I still have like 5 sitting around hedged with some OCT 627.5 calls. i dont get it the future option bid/ask spread is frigging nuts 4 bucks, while RUT is like 80 cents at most. Also it seems 30pts itm is deepest MM would go.
bill maclaren is calling for the s&p to 1190 by tuesday so the russell will definately snap down if that pans out. http://www.mclarenreport.com.au/yvs500/default.asp
it could be a point for a point move for these 2. current spread 4500 ER2 over ES. all time high is 6600 while low is like -1000. so 3000 even 2000 is not out of a question.
well i will watch the er2 at 3:00 when the eu markets open to see how it trades with the es then --- in the mean time i am holding my current short positions but thinking of adding some size.