Cotton - Front month very light volume

yeah, actually that spread was generous to alot of guys in the pit; actually so was the X/F/H broken fly too now that I think of it. Surprisingly, there are a few very tame relationships in beans that are consistently profitable......
 
Quote from heech:

Hi there,

I've been watching CT 10-09, and scratching my head wondering at the incredibly low volumes versus what ICE was reporting in their EOD data.

And then I finally realized all of the trading (by a factor of probably 20 to 1) is happening in CT 12-09.

10-09 doesn't expire for 2 months! Any idea why that might be happening? Is this typical for cotton? Why aren't people buying front-month and then rolling over into the 12-09 later in the year?
More...

I always look a few contracts ahead to see where the volume is giong to before a contract expires. I saw the dead volume and huge spread between bid & ask on the Oct09 contract like you did. I skipped right over it. It seems to happen in other products aside from Ag too. I think it makes for more comfortable trading not having to roll in and out every month.

I've only been trading Cotton for about a year and we all know commodity prices in the past year have been all over the charts. Anyone know what a normal price for cotton was prior to the big commodities run up? Are there any sources for historical prices?
 
CQG is pretty good....probably best not just to look at the prices alone but the relationship or term structure of the prices as you may see different effects such as backwardation occurring.
 
Quote from mgookin:

I've only been trading Cotton for about a year and we all know commodity prices in the past year have been all over the charts. Anyone know what a normal price for cotton was prior to the big commodities run up? Are there any sources for historical prices?
More...
Probably other sources out there, but here's OptionVue view of last 3 years in CT... price + vol.
 

Attachments

Boy, almost made an embarrassing (and expensive) mistake.

Because the Sep options have Dec underlying, I assumed the Oct options would be the same.

It turns out, I would've been wrong. Oct options have the Oct underlying!
 
K Cotton you forgot to mention also has volume when its time comes around. People just spread out of V deltas with the v/z spread.
 
You must log in or register to reply here.
Back
Top