Options with 0.9 delta. One difference though is that options
require a constant margin while MES contracts eat the margin slowly
but relentlessly. However, for hedging overnight between market
closes that is not a problem. If there is a trade at 4pm but it
disappears by 5pm, selling one MES till the next morning as a hedge
will do.
Then there is a slight difference between MES and MNQ: MNQ moves
more than MES nowadays. One could combine a SPY option with one MNQ
contract for a fine hedge.
Sorry, I got it backwards. It is SPY options with 0.5 delta
which you use for your 1st entries. Options on SPY with 0.9 delta
behave like MNQ. Both MNQ and MES are worth about $15,000 of the
underlying index.
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Options with 0.9 delta. One
Quick video on the exhuastion statistics
Posted by junkie on 21st of Jan 2020 at 12:22 am
Options with 0.9 delta. One difference though is that options require a constant margin while MES contracts eat the margin slowly but relentlessly. However, for hedging overnight between market closes that is not a problem. If there is a trade at 4pm but it disappears by 5pm, selling one MES till the next morning as a hedge will do.
Then there is a slight difference between MES and MNQ: MNQ moves more than MES nowadays. One could combine a SPY option with one MNQ contract for a fine hedge.
Sorry, I got it backwards.
Posted by junkie on 21st of Jan 2020 at 12:47 am
Sorry, I got it backwards. It is SPY options with 0.5 delta which you use for your 1st entries. Options on SPY with 0.9 delta behave like MNQ. Both MNQ and MES are worth about $15,000 of the underlying index.