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

To: Wayners who wrote (83028)	6/2/2016 2:35:40 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 220819

I would need to know the strike price and the exact Delta for that Call before we could calculate the number of futures contracts to balance out a Call position... the higher the Delta, then more contracts would be needed to balance it out... For Example: If my math is correct, then 20 Calls would be equivalent to 2000 shares of SPY... at the time of this writing, the mini SP is up 2 points, that's $100.00 while the SPY is up about .28 points, this is $28 per 100 shares... so, 2000 shares would mean the SPY is up $560.00... therefore one would need 5.6 mini contracts to balance out the actual SPY position... or one large contract which is the same as 5 mini contracts... the actual shares of SPY would have a Delta of 1.00... so, a .50 Delta would require half the amount calculated or 2.3 mini contracts... Tell me the exact Delta and strike price of your Call and then we can calculate the correct number of futures contract more precisely... GZ