Began scaling into short puts here at 134400 to covert to short synthetic straddle -- strikes from 15-30 otm [puts] and various durations.
I'm going long and taking out the gazillion stops at 1348. It might take 2 or perhaps 3 ES contracts to achieve this since everyone and his dog is short. As riskarb would say: feel the power!
Too late... lol already scaled out of half the position for profit and getting ready to close out if market keeps moving back higher... anyway still sitting on a NOV SPX spread order below mid and no fill....
Mark, Coach and others Can we use the DD to hedge against our traditional Credit Spreads?. For every 10 contracts of selling Credit spreads or IC, buy 1 DD.
DD is $25 a point I believe and is the Large Dow contract. You would have to really try and match the move of the SPX to the DOW and if you are wrong the market moves away from your shrot strike you could lose big. I have alwyas said, futures are a hedge in an emergency situation for the moment but not to hold for more than the initial shock. Long options are better than futures for placing a hedge that you will hold in place..
Coach By DD i meant double diagonal. I didnot know that it was a symbol for some futures contract:eek: :eek: