Actually, just realized I was in that trade and we discussed it a couple weeks ago. I can't remember why, but I exited it. Fully carry on it is somewhere around 18, right?
Well... I failed on my "committed effort" lol. Pt 2...recommitting! I will take a look and see if I can get a decent price on the spread. If so I might enter again.
LEJ - LEM pulled back a bit to around $7.42 today. Not sure where it really goes from here. I know this is an ag trade idea forum, but I really like shorting the April heating oil contract, long the May. About $250 in margin to hold. It exploded last week on the cold weather on the East Coast, pulled back, and is popping some today. There is some support around .026, but if it breaks that, could easily go to .016.
Have you looked into HO vs RB? I was looking at that lastnight, seems like there might be some seasonal trade potential there. I haven't looked into it very far though. Also have been looking into the HO spreads as well but haven't decided to execute on anything. EDIT: I just checked the spread on IB, I'm not sure what the CME requires but the margin requirement showed over $3,000 through IB.
FWIW I find the curve of cotton really odd right now. I don't know why low inventories would invert 2015 Crop( Dec15 to Jul16 ). As a result I went long +Jul/-2Dec15/+Jul16 @ -1.32( the 10 lots @ 0.50 on Dec/Jul16 was me ). I know it is not liquid but worth noting.
Nice day here Just to know, I shorted it on nothing more than a strong seasonal tendency and a feeling that 2015 crop condition would be "normal"... Did you have other catalists for the trade?