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I've seen some single trades as high as 200/mo, but I would say the standard per-trade-volume is 30-60/mo on the cal spreads. All these spreads tend to keep the curves in line and pretty tight. Liquidity starts to drop off around Cal17. There are a few active in the 18-22 range but...

Sorry, I mean a strip of futures contracts. So, long the 2014 strip is long 1 contract of each month, so 12 contracts total (long Jan, long Feb, long N,...). This gives you the average price for the calendar year, or just the "cal". The Cal15/16 spread for instance will include being long...

Trading longer term strips (quarters, half years, full years) or strip spreads (2015/2016 roll, 3rd qtr/4th qtr spread, etc.).

The LNG contract will be interesting to watch but I doubt it will get much liquidity initially. I do hope it encourages growth in the spot market though. The majority of LNG deals are still between large internationals and longer term in nature. The players involved tend not to need...

The full $500k exposure can be hedged with fifteen $90 crude futures puts. The overall cost will depend on your time frame. For example, the Dec13 $90 puts cost ~$5.75 and the Dec14 $90 puts cost ~$10.10. Total cost to hedge your $500k risk until Dec 2013 will cost (15,000x5.75)...

Bach's cello suites

Perhaps OP could weigh in and end the suspense.

Good reco, just needs to be weighted appropriately which you know.

I like Platts personally. Reuters is good but you have to read between the BS and assumptions. PetrochemWire is good for plastics. Bank newsletters are good for perspective but they typically talk their book. Macquarie and BNP offer pretty thorough daily market analysis. I'm sure there...

This is a question of hedging a unique, identifiable risk, not managing a portfolio of assets. The two are wholly different.

Atti I think you're over complicating things a bit and exposing the guy to large potential margin calls w/ the fences. From what it sounds like, a simple put strategy of monthly or quarterly puts out 9-12 months should suffice and be cost effective. No risk of margin call. Known loss limit.

Are those per month or annual costs?

I think he meant a calendar strip, as in a one-year term.

Do you want to hedge only 1 year out or each month for the next 12 months? What is the "size" of your exposure? 1 futures option contract is for 1,000 barrels. How much will be needed to offset your potential losses if crude goes to $50? Feel free to PM.

Yes, puts will help but they can be costly.

Apathy has overwhelmed the market.

Selling front, long backs in NG has been a good trade for awhile.

Valiant and thorough attempt Tsing, but ultimately pearls to swine.

Thank you for the quick responses.

Thank you Joe.