First time options question (using e-mini)

October 26th, 2011, 11:30 PM

First I want to say that I have zero experience trading options, or how they work so this question may sound stupid, but if someone can explain to me how to achieve this strategy your help will be much appreciated.

I trade the e-mini and I have a system that goes long on the open and the position is held till the close of the day. my hard stop is 50 points . My question is can I use options to reduce the risk if the markets does not go up, instead it starts falling. Furthermore, If my strategy works and the market goes higher I don't want the option to hurt me . So pretty much I am looking for a win / win situation. is that realistic with options.

October 29th, 2011, 05:50 PM

An option is an insurance, so it cannot be a win/win situation: you have to pay for this insurance.
If you go long, you can sell a ATM Call, or buy an ATM Put, to limit your risk. And also limit your profits.
It's a loser/loser situation, imho

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First time options question (using e-mini)

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First time options question (using e-mini)