Index spreads

T

traderjo

Does anybody trade Index Futures Calender spreads (SEP-DEC etc
They dont move like commodity spreads except in last few days or hrs of front leg expiary
So how to trade them?
Here is the screen shot for SEP/DEC spread
Experts please advice
upload_2017-9-28_14-30-17.png
 
You're basically trading expiry roll. So there's not much of TA to do with that. Up until about 2 or 3 days before expiration of the front month it's about interest rate and dividend... the last days are about the roll-over.

It depends a lot on who's got what and how are they exposed...

PS. You do realize that the chart you posted isn't really valid anymore from the 15th right? Because that's when your Sept future expired and the swing after that is basically the full Dec future on it's own.
 
thanks for the PS.. no i did not realize that...I did not look closely.. I foolishly assumed that the spread itself traded like that! so in a nut shell at retail level is it trad able?
 
Sure, why not? But you need to know what you're actually trading... that's the yield curve and the dividend expectancy.
 
You must log in or register to reply here.
Back
Top