Nat Spreads

Quote from JPope:

I hear ya but today looks pretty supportive from a technical POV. Fundamentals aside, maybe we give back half of today's move on Friday to consolidate and resume higher? Either way, looks like its attempting a bottom in the nearbys somewhere in here.
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Oh, I agree completely. Regardless of the horrible macro-fundamental picture for us, I think we are about to shake up complacent positions on a nice rally, we have all the ingredients in place, let's see how this comes in Monday. I will likely add more +F/-J tomorrow or Friday.

Have a good weekend.
 
http://www.ferc.gov/market-oversight/mkt-gas/trading/ngas-tr-phy-bs-map.pdf

This link provides the more obvious basis play opportunities for those who can schedule physical gas.

Certain winter "pinch points" can rock your world: Transco Z6 NY versus TETCO M3 is a real 'widow-maker'.

Energy is a spread trader's paradise. There is a whole class of energy traders who specialize in physical delivery plays: Financial Transmission Rights (FTR) in electricity is another really good one.
 
Trading Z6/M3 whether spread or outright truly is for the titanium-balled only. That market isn't even smooth, a single day gap could wipe some out, although with Canaport and REX I doubt the swings will be what they were in the past.
 
Amen brother.

Power can be the other crotch-rocket. In August 2007, I saw the inc/dec market in PJM-West go from $55 to $1,225 per MW-hr. over the span of about three hours.

In July of 2008 my broker told me of a famous German Bank losing $15M in one day playing the ERCOT hourly market (East Texas wind power vs. natural gas peakers on a very hot summer day).
 
Quote from bone:

http://www.ferc.gov/market-oversight/mkt-gas/trading/ngas-tr-phy-bs-map.pdf

This link provides the more obvious basis play opportunities for those who can schedule physical gas.

Certain winter "pinch points" can rock your world: Transco Z6 NY versus TETCO M3 is a real 'widow-maker'.

Energy is a spread trader's paradise. There is a whole class of energy traders who specialize in physical delivery plays: Financial Transmission Rights (FTR) in electricity is another really good one.
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And, if you go the way of tower research you don't even have to worry about if your position goes against you :)
 
Quote from PAPA ROACH:

FYI, I am taking the +Z/-F into close, going to trade that in the spot for Dec, I believe it will provide more bang for the buck as I believe cash will trade over F several days within the month.

Good luck all.
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Peeled off half of what i took into cash market on this spread at -.135 for a +.21 profit.
 
Quote from PAPA ROACH:

Peeled off half of what i took into cash market on this spread at -.135 for a +.21 profit.
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Closed the other half as well, at -.14 for a .205 profit.
 
closed out my entire +F/-J position at -.15, made a whopping penny!! I want to reassess next week and possibly layer in again at better, just didn't like the model flip flop of the cold.
 
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