Options Jive

1 Futures Contract = ? ETF Shares

| Nov 21, 2016
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    Options Jive

    1 Futures Contract = ? ETF Shares

    Nov 21, 2016

    While tastylivers tend to be product indifferent, premium sellers in high liquidity environments, we also recognize the importance of trade size. To be a successful trader involves knowing how options, stock, futures and options on futures relate to one another. This is where share equivalency and correlation come into play.

    Transitioning from 100 shares of SPY to trading 500 shares can be quite the leap, and some might not realize that 1 /ES is equivalent to 500 shares of SPY. tastylive breaks down these share equivalencies and the correlation between top for market indices (E-Mini S&P 500, the Dow Jones, Nasdaq and Russell 2000) and their corresponding ETFs as well as the 30-year Bonds.

    tastylive also takes a look at Gold, Silver, Crude Oil and Natural Gas and then for the Euro, Yen and Pound, including the smaller size contracts that are available. The final table was of the 3 month correlations of all the above to each other, ultimately helping traders get a better grasp of portfolio management and the importance of non-correlated products and strategy diversification.

    For more information on ETFs see:

    Watch this segment of Options Jive with Tom Sosnoff and Tony Battista for a great discussion about ETFs and their corresponding Futures with a focus on their correlations to their Future and to other ETFs and the share equivalency of an ETF to its Future.

    This video and its content are provided solely by tastylive, Inc. (“tastylive”) and are for informational and educational purposes only. tastylive was previously known as tastytrade, Inc. (“tastytrade”). This video and its content were created prior to the legal name change of tastylive. As a result, this video may reference tastytrade, its prior legal name.

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