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Strategies & Market Trends : Waiting for the big Kahuna

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To: HH who wrote (19522)	5/30/1998 11:58:00 PM
From: Temple Williams	Read Replies (1) of 94695

Heyward: The S&P June Futures Contract (nickname: Spoos) requires margin of approximately $17,500 per contract (the E-minis are 1/5 of this). Margin fluctuates depending on whether or not you hold contracts overnight. Day traders require less margin ($12,500 approx). The margin can vary from broker to broker. Established accounts may require slightly less margin. Each "Spoos" point is $250 ($50 for the E-minis). A 10% move from here, up or down, would be roughly 109 Spoos points, or $27,250. Commission on the Spoos varies ... I pay $27 for a round trip (open and close of position). Although premium erodes on the Futures contracts over time, it does so in a relatively "fair value" fashion. Premium stripping is rare (unlike options) and only appears briefly during market spikes. It is a futures contract, and so risk is unlimited. My trading diary might interest you at skansearch.com I prefer the Spoos to Options because their risk/reward is not subject to a lot of the games played in options pits, and the premium stripping is minimal. The moves are "honest" ... I have succeeded with both options and with Spoos. I much prefer the Spoos as both a position trader and as a daytrader. Temple

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