Natty Gas/Oil BTU spread

[runningman]

Anyone know of any charts of the Natural Gas/Oil BTU Spread? Its getting very large now, I'm just wondering how that compares to its historical norms.

 

[Comanche]

Old Ratio is 6:1

Natty price*6
or
crude price/6

that ratio has been de-coupled for awhile now. I have seen many a trader get hammered trying to play that over the last year-and-a-half.

 

[runningman]

I think technically its 5.8 times NG, but 6 is close enough. Have you seen a chart or historical highs/lows on the ratio?

 

[HLB]

say, one want to play this with QM and QG
How many QG contracts he should go long and how many QM short?

QG's multiplier 2500
QM's multiplier 500

2500*QGprice*numQG = 500*QMprice*numQM

QMprice = 6*QGprice ?

QM price AUG = 71.800
QG price AUG = 6.615

2500*6.615*numQG = 500*71.800*numQM

numQM / numQG = (2500*6.615) / (500*71.800) = 0.46

numQM = 0.46*numQG

So,

sell 1 QM and go long 2 QGs (or 1 NG) ?

 

[runningman]

Quote from HLB:

say, one want to play this with QM and QG
How many QG contracts he should go long and how many QM short?

QG's multiplier 2500
QM's multiplier 500

2500*QGprice*numQG = 500*QMprice*numQM

QMprice = 6*QGprice ?

QM price AUG = 71.800
QG price AUG = 6.615

2500*6.615*numQG = 500*71.800*numQM

numQM / numQG = (2500*6.615) / (500*71.800) = 0.46

numQM = 0.46*numQG

So,

sell 1 QM and go long 2 QGs (or 1 NG) ?

Here's how I read it:
1 CL = 6 NG
1CL = 2 QM
1NG = 4 QG

so 2QM = 24QG

1 QM= 12 QG

So you would buy 12 QG and sell 1QM

someone check my math.

ps anyone in this trade right now is getting steamrolled.

 

[HLB]

Quote from runningman:

Here's how I read it:
1 CL = 6 NG

6:1 isn't ratio between number of contracts, but between price of n. gas to price of crude oil.

So it,
sell 1 QM long 2 QG
or
sell 1 CL long 1 NG