Recent content by just spreads

I can provide an answer to your original query i.e. Hi, does anyone know the reason for the big fall in brent first month spreads? This is most likely due to market perception that prices will continue to fall, therefore the deferred months come closer in price (narrow) to the front month. Also...

I'd like to reply to your query properly. Brent oil has dropped $10 dollars in the last 30 days, so can you explain #1 - what you mean by 'big fall' in first/front month spreads i.e. widen or narrow? #2 Does loading program and 20 cargoes refer to the physical delivery of oil? Please note EU is...

We all have different ideas on risk. My deliberate focus on trading just calendar spreads is meant for those that have actually traded for themselves. These are the people that will recognize the advantages of this type of spread trading.

All things considered, if a trade was not meant to be (profitable or to your expectation) it doesn't matter how many or types i.e. options of additions you implement. You are essentially relying on hope for the market to come good and not exercising proper trade/money management. I think this...

I manage the risk associated with calendar spreads by placing a money stop (usually equal to the initial margin) or a selected price/chart level on a close basis only. Even with the high propensity of calendar spreads 'rotating' in a range for the lifetime of the spread, it is important to have...

Well said - your follow up (commentary) is accurate and brings balance to the finer points of spread trading. It is important to understand something before you discount it or simply say no. This is the case of trading calendar spreads i.e. it just might provide the level of comfort for many...

#1 There is merit in your idea of using CSOs but I do not use options. #2 In all trades I employ a STOP loss i.e. a money STOP which is equal to the initial margin; or select a price/chart level and close out the position after two closes over that level; or you can 'fine tune' the exit/stop...

I agree with the posting from Oskeewow that costs go up. Without some measured amount of risk and expectation then there is no trade opportunity. More importantly, you create an additional level of risk by involving options on top of a simple calendar spread unless you have a profound view of...

Calendar spreads already have built-in protection because you are long and short the same commodity. The reduction in volatility is a form of protection. I do not use options in any of my trading, only calendar spreads using futures contracts. Stay in markets that are efficient i.e. plenty of...