Quantcast
  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Hedging an Index position with an ETF

Discussion in 'OptionVue Forum' started by tom, Aug 15, 2015.

?

Would Hedging an Index position with an ETF be a feature you would use?

  1. Yes

    93.3%
  2. Probably

    0 vote(s)
    0.0%
  3. No

    6.7%
  1. tom

    tom Administrator Staff Member

    Many people use the ETF's to hedge index option positions where they can't purchase the index. For example, hedging an SPX trade with SPY or a RUT trade with IWM.

    I've suggested this to Len Yates in the past and he said they have had that request from other customers.
     
  2. tom

    tom Administrator Staff Member

    You can already add futures to indexes. Use the "Define" button. This is a screen shot for SPX showing the ES futures
    2015-08-15_OptionVue-Define.jpg

    NOTE that ES futures have a 50 delta so to create a synthetic long call with futures contracts and a long put I need to buy two futures contracts. You can see OptionVue combining the futures contract with the SPX options:
    2015-08-15_21-27-57.jpg
     

Share This Page