S&P Pit Traded Options Question

Discussion in 'Options' started by Cdntrader, Oct 2, 2006.

  1. assuming you were long "5 ES 1300 oct call options" you could sell "1 SP 1300 oct call option" in the pit to offset the risk/margin requirement right?
     
  2. right, your risk will be offset, whether your margin will be reduced as well or not would depend on whether your broker allows for cross margining. All you are left with is maybe some pin risk and comish if ITM expiration.