Introducing TPA -- Tick Preference Arbitrage. aka Tick-PIiMA
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Again, all you need to do is to choose the following:
1) Short (or cover) in Colgate shares at $67
2) Buy in /CL Crude Oil futures. Always stick to the front-month, as you'll benefit from the contango.
3) CHOOSE your tick-preference! In this case, you'll choose to take your profits in crude ticks.
$67.33 - $33.99 = $33.44 * 1,000 =
$33,440 in profit. Less commissions. Sick arb.
1) Short (or cover) in Colgate shares at $67
2) Buy in /CL Crude Oil futures. Always stick to the front-month, as you'll benefit from the contango.
3) CHOOSE your tick-preference! In this case, you'll choose to take your profits in crude ticks.
$67.33 - $33.99 = $33.44 * 1,000 =
$33,440 in profit. Less commissions. Sick arb.
I actually heard, from people in the know, that the CL/CL is a commission free trade. No commissions will be charged by any broker. It's apparently a deal that the NYMEX and NYSE came up with back in the 70's during the great toothpaste shortage. The NYSE (where CL traded) cut a deal with Nymex asking for no fees to be charged to investors partaking in The CL/CL trade. In exchange all CME members got free toothpaste. I knew there was a reason that all the NYMEX guys I ran into over the years had good teeth.
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I just went short 500 VX volatiltiy future contracts in the front month but completely hedged it off buy going to costco and buying toilet paper. My quant team said that if vol drops we make money. But if vol spikes and the market crashes, people will shit their pants so the toilet paper profits will hedge whatever I lose in the VX.
I found another trade, but it only works if you trade in tranches.
If you say sell 3 tranches of ES shares and lose money that day. The next day, it doesn't count.
It's the greatest trading strategy since "tranched" bread.
If you say sell 3 tranches of ES shares and lose money that day. The next day, it doesn't count.
It's the greatest trading strategy since "tranched" bread.
Sorry, please elaborate. If you short three tranches, of the same product, you're indemnified from losses the next day? The Pompous Exclusion Principle?
exactly. but you have to be a non-English speaker. it's all about portfolio growth acceleration.
I've been short CL oil shares for a few days and getting beat-up in the front-month. I now realize that I didn't practice what I preach about trading the 2020 contracts for the massive contango premium.
I cannot buy UWTI in this situation as my dealer is a new guy and he accepted a deposit in Bubblicious.
Guys, any suggestions on how to arb this huge loss into a huge gain?
Do as I say... not as I do!
I cannot buy UWTI in this situation as my dealer is a new guy and he accepted a deposit in Bubblicious.
Guys, any suggestions on how to arb this huge loss into a huge gain?
Do as I say... not as I do!