Hedging an Outright Futures Position with Options

[@anantshaktivardhan7865]

I was looking all over for sound knowledge on hedging futures... One hour well spent... Thanx for the great session...

[@E.Asinus]

Nice video, i was frustrated with stops for a long time and have recently taken to a few options hedged strategies using dailies. Got one strategy that really has been doing well but really limits loss potential and its been nice. Nothing like having your losing trade have well defined risk and the end of the day as a time limit instead of an arbitrary number i picked. I also have managed to use the t+2 timeline of settling the dailies to take another option and scalp my previous loss back in the evening with well defined risk again

[@robertmccuiston1535]

Keep it simple with the questions and don't over think it unless you wish to lose money. This lady is only confirming what I learned to do rather than using stop-losses. Also trade as little as possible and the more money you will make with a plan. Take a look at the Euro-Dollar and the US Dollar index if you want some excitement.

[@mohitdixit3698]

Thanks for explaining it so clearly

[@tR3NdSt4R]

Future options ATM do not trade at a 1to1 with the out right futures, because the delta of futures are always 1 and the delta of a option at the money is 50 in which is half a point for each point the market moves

[@jigsawtrading]

So 2 for 1?

[@tR3NdSt4R]

Options do not trade at an equal delta to the underlying derivative. For every point the es trades ATM an ATM option will trade 1/2 from the 50 delta, gamma does increase delta as the option goes further in the money, but there is never truly a 1to1 as price moves.

[@shahbazishaque4068]

It is 1 to 1 on expiration. The condition to get that is that u hold the position till expiry

[@mrithun15]

wel i guess thats why you hedge with ITM instead of ATM.

[@thefacelessman7759]

hi