Search results

Notionally weighted is pretty straight forward. How would one go about adjusting for vol?

Thanks for the info, not sure what you mean by not recognized spread? meaning not enough market players? As for the margin wise, can you actively trade the spread? I was imagining trading it when the spread gets really out of whack, i understand nothing is written in stone, and sure enough...

Hi, New to spread trading, i'd be interested in trading the spread of this highly correlated instruments. How would i go by to get my ratios? CAD contract is for 100k, CL contract being for 1000 barrels? Any advice/tips would help. Thank you.

Looking to use Futures contracts.

Ok but staying on commodities-to-pips spread, how would one go about getting an accurate ratio for it?

Most if not all know that the $CAD has an almost perfect correlation with CL. If one were to venture off trading that spread, how would one go about breaking down the ratio of contracts needed to be able to do so intelligently? I trade CL outright somewhat actively with its current...

how crazy is it to go long vol here....summer never brings much action other than uncertainty in the middle east and that tends to have ripple effects.... I don't expect the VIX to sit at these levels for long....

Lumber contract on cme is for R/L of 100k board feet. Is it possible to have prices or to be able to hedge a position on certain length??? Say 2x4x9 2x6x9 Or at least pull charts on specific lengths?? Front month continuous contract?? Thx

So what would be some of those hedging strategies, other than outright futures or credit linked notes?

thank you for that. I'm surprised to see that no producer would use gold etf's to hedge their books. seems like it would be an option... then it's very similar to the agri mkts - simple use of outright futures or puts/short calls!

Hi, If anyone could shed some light on how gold miners/producers hedge their position? I have a good understanding of how it is done in the agri mkts but not sure what would be the optimal hedging instrument for a gold producer. Would it be: 1. Gold futures 2. Gold ETF's, if so...

Hi, You recently talked of "We've had a frustrating amount of days where long sp delta outperforms short vol, the extra vol makes weighting these difficult imo. " Would it be much to ask you to elaborate on this if possible. I'd greatly appreciate some clarity. when you say the sp...

What about bean oil? Or rapeseed? Would appreciate if you'd share a monthly or quarterly level for bean oil if you have one ? One thing is certain, low oil price is not a driver for bean oil demand!

Where is this mkt going?? How high can this crush go? Any thouhts on the direction of Meal or seeds in a near future??

So your a crushing plant, and you are short the board crush margin. If you don't anticipate to crush and need to either reverse your position or roll over to future expiry months, how would the cost differ? When you roll-over your essentially reversing your position? If this is correct...

1. So wouldn't a crushing plant lock in their crush margin on cbot and then hedge the contracts they progressively take on with their clients? It's just you seem to indicate that it's done wrong and shld be done differently, i'm just trying to understand this best i can. 2. So what would...

Thanks for your answers nazzdack. For #2. But what do you mean by reverse crush? Even the CME posts the board crush margin as (meal + oil - seeds). For commercial purposes, aren't you long seeds and short meal and oil until you deliver them. So i'm assuming there's a...

Can someone explain the factors in the board crush margin calculation: For example, in Soy it's: 2.2*ZMZ13(sb meal) + 11*ZLZ (sbo) - ZSF14 For Canola: ZLF14 (SBO) * 9.700 + ZMF13 (SOY MEAL) * .6173 - RSF14 (CANOLA SEEDS) I don't understand the factors. Also, how does that factor...

Why do Ag products (soy, corn, meal) have a price discrepancy btwn Pit & Electronic trading? Thanks,

How would one calculate the crush margin for Canola (Rapeseed) - would it be priced off soy or corn? Thanks for the feedback