Recent content by drewfus31

Specifics on the option? Different exchanges/markets have different exercising and assignment... "i have some bear put spread deep in the money" If this were Corn, for example you will be assigned a short position for the Higher strike price, then off-set at the lower strike price...

Yeah a cushion is highly recommended, ZDO is precisely correct on that front. Personally, I allocate a % of account size toward Initial Margin when evaluating what size to trade. Initial vs. Maintenance (i don't believe anyone answered this in full) Initial = the amount needed in your...

"Spread Shuffle" I like it!

COW is the ticker

There are a few factors involved in The Carry. Interest rates being one of them. A quick'n'dirty method would be to figure on about 3 to 3.5 cents per bushel per month to store grain. This cost is approximate and can differ due largely to interest rates. (including opportunity cost of...

If you treat the markets like a casino, you will get the same result. Seek knowledge, seek consistency, seek good returns. Spread Traders Live to Trade Another Day!

ESPECIALLY during the Goldman Roll! Or HELP you a lot, regardless the close is by far the wildest in spreads, especially in meats.

In regards to the Cash-Futures relationship, in the grains for instance. btw, I grew up on a 3500 acre farm/ranch, so I know this stuff first-hand... Dad calls the elevator and says "I have corn to sell, what are you guys bidding" Co-op, or grain buyer "the BASIS is 10 under" which means...

Precisely, I understand and agree wholeheartedly the difference btwn ROI & ROM is grossly overlooked by most. The low low volatility of corn spreads is such that the ROM PER PENNY gained on this spread for me (with hedge margin) is 37%, am I looking at this correctly? Mahalo!

True, brokers sure do stand to gain from it! 2 x the commission, much much less volatility, relative protection against locked limit moves. (Imagine being outright during mad cow, whereas a spread trader was relatively unphased) A broker will benefit more from recommending spreads by having...

Nobody ever makes light of the REST of that catchy little phrase...... "THE TREND IS YOUR FRIEND...... 'TIL IT BENDS OR ENDS" can't forget the last part!

If you want a good charting system that can help you with spreads... go to www.trackntrade.com It will save you a ton of money, its all end-of-day data & you get a 30-day free trial. The spread plug-in is extra, as is the accounting & options plug-ins, but these are the most useful. Its...

Good book for futures. If you want to learn about trading the Agricultural Commodities which are things that can actually be measured (great for us Ag-Economists). Try this book... Agricultural Futures & Options by Wayne Purcell/Stephen Koontz... It will give you a sense of WHY we have...

yeah that would be nice, sounds like Kansas City & Minneapolis are going to start using E-CBOT for wheat here real soon... I doubt it'll happen 'til CBOT goes public or gets bought by the merc... those guys on the floor will soon be the way of the dinosaur, but they've got a lot vested in...

Beans & slippage? Hmmm... have you traded Cotton, Coffee, or OJ? Now THAT's slippage, let alone reported fills 45 minutes later. For the fella that 's the beginner.... Rule #1 DON'T TRADE PORK BELLIES Rule #2 Don't trade illiquid markets (some in NY, Lumber in Chicago, all...