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I almost always just trade futures. I only sell options for a covered call.
Options have only one benefit, IMHO, namely that your maximum risk is known
upfront. Unfortunately that risk regularly occurs. In reality, the risk of
futures is known upfront as well. The size of the SP500 contract is about
$450,000. You can't lose more than that. The size of the Mini Value line is
about $90,000. Fortunately, in futures, that risk has never occurred.
Futures have the additional benefit that you don't have to deal with
volatility and unkown time issues. I say unknown, because you do lose the
carrying cost each month you hold the contract. But time doesn't cause the
contract to go to 0. In liquid markets (SP500, US Bonds), stops almost
always perform a good function of limiting risk on futures.
At 09:11 AM 8/20/97 -0500, brandont@xxxxxxxxxxxxx wrote:
>RT's-
>Up to this point I have stayed away from futures trading. But I have been
trading more of the S&P 500 Index options than
>anything else.
>
>Does anyone have an oppinion to the advantages/disadvantages to trading
S&P Future rather than Index Options?
>
>Also, does anyone know of a good book on nothing other than S&P futures
trading and/or any good web pages on the subject.
>
>One last thing, can someone tell the min. margins amount required to Day
Trade S&P Futures?
>
>
>Thanks In Advance,
>
>Brandon
>
>
>
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Lawrence E. Lewis
Vice President, Chief Technology Officer, Chronology Corporation
EMAIL:lel@xxxxxxxxxxxxxx TEL:425-869-4227 x122
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