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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (83023)	6/2/2016 1:55:13 PM
From: yard_man	Read Replies (1) \| Respond to of 218276

zerohedge.com

To: GROUND ZERO™ who wrote (83023)	6/2/2016 2:04:06 PM
From: Wayners	Read Replies (1) \| Respond to of 218276

GZ I've been trading options on SPY but have been frustrated by not being able to take profits in the middle of the night, obviously because the options on SPY don't trade in the middle of the night. I've now setup a futures trading account with the same broker but not sure how many /ES contracts to sell to hedge a call option position in the SPY. I know you are the expert on such matters. Let's say I have purchased 20 contracts of calls on SPY at a price of $5.00 each for a total cost of $10,000. In the middle of night, I calculate if the calls were trading, I'd be able to sell them for $6.00 each for a total of $12,000. How many contracts of /ES do I need to sell to perfectly hedge, delta neutral the whole call option position. Plan is to unwind both positions at a calm time in the morning where spreads are normal.