3309 Drysdale Ct
Edwardsville, IL 62025
Everyone here is well aware of the ES mini futures contract. it
controls currently $143,950 for one contract and moves $50 for one
point, so a 100 point move in ES would be $5000, highly
However there's now a micro ES contract symbol MES. It controls
exactly 1/10 of the regular ES, so $14,395 or moves $5 for every
point. For those who didn't like the leverage of the ES, the micro
MES might be something to consider as it's much easier to stomach
futures of course have benefit of the 60/40 tax rule with 60% of
the gains being taxed as long term cap gains, vs stocks and options
that have to be held for a year to get that special tax
I've traded this contract the last couple days, it's very
anyway figured I'd share in case you were not aware of it. I
think it's a good option over ES because even if you had plenty of
capital, it allows you to scale out: For example if you were
comfortable buying one ES contract, you could buy 10 MES contracts
representing the same value and scale out of them a couple at a
time on a move, you have 10 scale outs you could do, whereas with 1
ES contracts you can only sell it once and you are out! For 2 ES
contracts you would have 20 MES
Great information Matt, if you haven't already perhaps you
can include the MES into the trading system portfolio.
I don't think they do.
anyway for example because I am quite a few SPY options, I
hedged by shorting MES contracts just after the cash market close.
as I'm a bit worried about a pullback. Of course I can cover any
time after hrs or late evening if I have to. stop is at 2884 on the
ES down about 18, glad I took that hedge short using the
futures. However for me now is always the hard part, do I just
leave it and go to bed in case they continue to fall, or cover for
a profit now in case they came back up while I'll
Thanks Matt. Is there something similar on Nasdaq futures?
Awesome info and suggestion! Thanks Matt. I will
switch to MES.
Thanks for the info, Matt. Very interesting!
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!