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Spreadtrading

CORN Calendar SpreadZCU18-ZCZ18 has started its seasonality in March (precisely March, 14) and will end on August, 4. Spread that now is back interesting for open a short position for several reasons. Not only the seasonality (20 winning years in last 20), the Relative Strenght Index is in strong overbought and there is a "fundamental" consideration. The September delivery future will increase its value more when corn is harvested compared to the December contract. In practice, there will be an expansion of the contango. The price of the corn (but not only) is always higher before the harvest. Then it arrives on the market and increases the offer, and if there is not also an increase in demand, the price will start to fall (as the seasonal patterns suggest) and it is for this reason that I sell the corn in hedging between May and June.
CBOT:ZCU2018Short
by TradingwDavid
30 Year, 2 Year Spread Making New LowsThe spread between the 30 year US treasury bond and the 2 year bill has made new lows as the yield curve in the US continues to flatten. Anticipate a pullback at some point, but the curve will likely continue to flatten as investors price in a rate hike despite dovish comments from Bullard at the Fed. This pullback will be confirmed by a green triangle on the Kovach Reversal Indicator. If you're interested in using this indicator, check out quantguy.net.
TVC:US30YShort
by quantguy
Spread trade with Russel2000 and Nasdaq100Recently, the Russel2000 and the Nasdaq100 are developing more and more in different directions. Since we expect a weaker stock market in the coming weeks and months and the Nasdaq100 can drop significantly lower, the possibility exists for a spread trade in both assets. The approach is relatively simple: Long in the Russel2000 and short the Nasdaq100. IMPORTANT here is to look at the nominal value of the individual futures in order to find the right relationship/position size. Taking into account the nominal value and the current implied volatility, you would buy two Russel Future (RTY) and sell one Nasdaq Future (NQ). It is interesting that the margin requirements are very low, if you put it directly as a combo, at the same time the financial risk is easy manageable.
CME_MINI:RTY1!Education
by Tradimo_Official
Trading NFLX with the Least Possible RiskIn my personal life all my friends were selling their cable TV just to subscribe to an on-demand entertainment service such as NASDAQ:NFLX and this encouraged me to look for potential trades related to this idea. I decided to place a spread trade on my watchlist during early 2016: (NFLX/VIAB) and I have had the actual trade on for about 4 1/2 months and it is a play on the current trend in the entertainment industry. You might think that NASDAQ:NFLX is the obvious trade to express my idea but this is an exception due to the fact it has the best fundamentals in the industry; a huge PE ratio compared to it's counterparts, forecasted increase in earnings growth of 100%+ in 2017 and the due to the cyclical nature of the stock the ISM and other indicators are basically telling you that the spread follows the business cycle and looking at the data I'm sure the economy should be very healthy in the coming year which means this trade could stay as a live position for at least 3 more months minimum. When it comes to the risks involved I choose to implement a spread trade instead of just going long NASDAQ:NFLX due to the fact the potential reward could be far greater if I shorted a failing cable company stock. I came across viacom which is a company that runs cable TV network channels such as MTV and Comedy Central. If you've ever watched these channels in the UK you will have noticed all they do is just play reruns endlessly of Friends and Pregnant at 16, not exactly the most exciting company in the world although I do enjoy the odd episode of Friends! The fundamentals of the VIAB stock the market seems to agree with my point of view. Traders are buying/selling NASDAQ:VIAB at a whopping 50% discount to the sector! Don't fall for the guys on TV saying this stock is "cheap", it's at that PE ratio because everyone is shorting it to hedge out risk and are going long NASDAQ:NFLX or another intra-sector constituent such as NASDAQ:FOXA . The PE ratio is low because the company earnings are low quality not because they are cheap. I wouldn't be surprised if this was the most popular spread trade for hedge funds right now who are looking at the entertainment sector. In shorting NASDAQ:VIAB I have taken must less risk going long and short the market and entertainment industry related stocks and I have made a sizable return so far. It all comes down to NASDAQ:NFLX earnings on Jan 16th as to whether I increase my position even further. Would I recommend putting this trade on? Yes, but please do your own research and go through the fundamentals I have mentioned for yourself and see if you agree with me. In terms of timing and technicals its just a matter buying at the low of the uptrend. What's your take on this trade, maybe you have a similar trade on, let me know!
NASDAQ:NFLXLong
by aelius
Historical SPX500 "It's my party and I'll short if I want to"What a journey!!! I have sweated and bled trading up the levels on the SPX500 in recent weeks. Fortunately my personal view and analysis set me up for the strongest positions possible. Taking long profits all the way to 2140 but that is where I am drawing theline. Could we have a further higher level of historical price? Yes. Can I tell the future? No. Please therefore be careful. In my opinion however from here and for the rest of this week, this month, next month and even into September we will be coming further back down the price levels. Here on my chart you can see my Fib work and SHORT position indicator set. At this moment I have taken a poorly hedged account, cut 250k out of dead weight, added 150k back into the balance through longs and im now anchored up to hang for the short price to come. Essentially I'm almost there, just need the price to start falling from here and I'm a hero. Hopefully I'll make it 3/3 spot on analysis posted. I expect a rate of 2070 or below come close this Friday. #bitchbetterhavemymoney :) #shortyshorts #falldownprediction #mysticmeghasnothingonme
FX:SPX500Short
by RSCexclusive
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