Closing the Gap - Futures Edition

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Large Cap vs. Small - Time for a Turn?

Closing the Gap - Futures Edition

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Pete Mulmat, Tom Sosnoff and Tony Battista examine the historical relationship and behavior of large cap indices (like the S&P 500 & Nasdaq) and small cap indices (like the Russell 2000). These indices often have a high positive correlation to each other, but this relationship can diverge during times of economic uncertainty or expansion.

With this in mind, Pete presents data surrounding the current relationship of /ES & /NQ to /RTY and poses a pairs trade setup based on a strengthening Russell relative to the Nasdaq. Tune in for the full trade including entry points and management techniques!

Russell 2000 Contract Specs
  • Symbol: /RTY
  • Contract Size: 50 x Index
  • Delta: 50
  • Minimum Tick: 0.1
  • Tick Value: $5
  • Expiration: March, June, September, December
Nasdaq Contract Specs
  • Symbol: /NQ
  • Contract Size: 20 x Index
  • Delta: 20
  • Minimum Tick: 0.25
  • Tick Value: $5
  • Expiration: March, June, September, December

E-Mini S&P 500 Contract Specs
  • Symbol: /ES
  • Contract Size: 50 x Index
  • Delta: 50
  • Minimum Tick: 0.25
  • Tick Value: $12.50
  • Expiration: March, June, September, December

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