Hi Steve--sorry I did not get back with you right away
Jim has given you some information on futures.
>>TT; RE:"I will go flat the S&P futures when/if it gets to 958+..."
The system that I use to trade the S&P futures goes flat when I have a profit of 40 points -- just the way the system works---the precise point to go flat ie whether it should be 40 points or 35 or 50, is a function of where the futures are at. In other words, if the futures were trading at 500 or 1000, the profit that I would seek before I go flat would go down or up accordingly.
>>Tom, does go flat mean that you "close" (the current CALL) position<<
Going flat--means that I close out my current long position in the futures--and at that point I have no position in that instrument. When trading futures directly, one is not trading puts or calls -- now it is possible to trade the SPX options--which uses the same underlying index--but that is not what I am doing.
>>or, "hedge" a position with offsetting PUTs ? Please forgive my ignorance - I am new to OEX options trading<<
Nothing to do with puts or any other options--it is not hedging either--it merely means that I don't have a position in the S&P futures and so no matter what happens thereafter, I am not impacted -- until I take my next position.
>>Being so new to OEX CALLS/PUTS, perhaps what I don't understand is their relationship to "futures", as I have no experience with that whatsoever!<<
As I said, it has nothing to do with options and it has even less to do with the OEX which is based on a different index than what the S&P500futures are based--where the underlying index is the SPX. May be you got confused because in the same posting that I went long the futures, I think that I also said that I went long OEX calls and closed out OEX puts that I had.
Hope this clarifies matters. |
