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Emini - Cash Settlement Question

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Legendary Market Wizard
Chicago Illinois USA
Trading Experience: Advanced
Broker/Data: IB, ToS
Favorite Futures: /ES, US Equities/Options
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Posts: 2,896 since Aug 2011
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you are doing it right in my opinion.

I am very active so I do not have a variable full hedge that I can plug in and out. But, I almost always have long puts either on individual companies or SPY. In the last two weeks I have been thinking about the benefits of a plug in delta neutral hedge. Seems too expensive for me, except if the next pullback is a monster.

One other thing is smartstops dot com or tradestops dot com Ive been looking at both of those as something to add but like I said I am very active and would close longs if a decline looked or felt precipitous.

As an example. I own 75 dollar AAPL. On that last little pullback I bot some Jan 19 170 calls for 17.40. Next week I'm looking to sell those calls for 22. This will partially finance the Jan 19 170 or 175 puts. I'll buy those for protection, yes they are expensive.

But if between now and the next 300 or so days AAPL comes in a bit I'll make money selling the puts and I'll do that over again.

My fear right now is the capitulation buy that seems to be going on. I'm not calling it, but when this market sells off it could be a big move.

All the best.


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