Re: Rookie question on hedging

Yep.  But you have to have the right hedge on.  Are you hedging with a
big S&P option?  That wouldn't be a good hedge.  You'd also have to
keep readjusting your hedge as futures move due to gamma.  


On 27 Nov 2003 01:26:40 -0800, [EMAIL PROTECTED] (David Kilo)
wrote:

>Let's say I want to go long one S&P mini contract; I expect a good run
>over the next couple weeks. Can I simply hedge my bet with a short
>option. Is it simply a matter of getting the delta on the option to
>find out how many I need to hedge, weighing the cost, keeping a eye on
>the delta until expiration. Other details? Caveats? Thanks in advance.