Dec03 /April04 Lean Hogs

[Andreas]

Another nice spread is the December 03 / April 04 lean hogs spread. This spread is a seasonal spread which starts to work around this time of the year. Gives a good opportunity to trade lean hogs, but with a lot less volatility and less margin than the outright futures.

 

[Andreas]

An update on the hog spread

 

[Andreas]

Still going strong

The trend is still firmly up. But also very steep, so I expect a correction soon. I keep a "mental stop" at 2.80 premium April to lock in a profit of $1600 per spread so far.

Have a good weekend !

 

[oatman]

Beautiful trade.

 

[Andreas]

Thanks oatman,

Enjoy your weekend !
Andreas

 

[Andreas]

Closed out at 1.90 premium April, or $ 1900 per spread, before commissions.

 

[Newtron Bomb]

Just caught up with this thread.. excellent

Liked your analysis on gold too... would have been good to break the high and hit is target but there is still time for that

WD again

 

[Andreas]

Thanks NB !

With respect to gold, it looks like the rally ran a bit out of steam. But as you say, there is still time.

Best regards,
Andreas

 

[PeterTT]

Andreas,
Could you tell me the spread betting company/ broking company who you are doing these trades through as I cannot find one that will quote Leans Hogs?
Thanks for sharing the trade idea though !

Peter

 

[Andreas]

Hello Peter,

I am working with two futures brokerages. GET Futures (www.getfutures.com) from Sydney, and Commodity Resource from the USA (www.commodity.com).
GET is an IB for MAN Futures, and Commodity Resource for RJO'Brien. Are you based in the UK ? I am sure you can find a good futures broker there to trade the US markets. If you want an introduction to my brokers, send me an email.

Best regards,
Andreas