Not a windfall trade, but the M/N is ripe for a sell in this area (buy june/sell july). I have sold half a position at .135 and will add more in the coming days as we get into the monthly roll. I like this trade into the .095 area for a .04 profit. The cash is getting bid for the balance of may (.085/.09) which is coming in. Cash also was rather strong last month.
Meanwhile, PTEN ( the land based NG drillers ) just reported today that the average number of rigs working for the month of April had declined to 69... down from 92 in March. The stock is so OVERVALUED up here >$14 it isn't even funny. The institutions are way ahead of the game here, and they could find themselves in a crappy position at some point.
Buying V/X spreads today, they have had a nice overall correction and the storage fundamentals will push cash out weak as the summer wears on. I like this spread out into the .80's. I bot .599's this morning.
Not sure what market you are looking at, we are talking about natural gas here, that spread closed at -.595
Yes I made a Mistake, I've read the Papa post fast cause i was working at the moment of my post and I bought the M/V spread. I apologize for my mistake
Papa just a quick request for clarification if I may. You mention V/X will move out to the .80s. Am I correct then to assume that you are selling V and buying X. Thanks.
That is correct. The way you do spreads on globex is different than what we did on the floor, I still mention buying/selling a spread based on what we called it on the floor. Whatever you are doing with the month that has the premium price is what you are doing with the spread. In my V/X, the X has the higher price and I am buying X, therefore I am buying the spread. If V had the higher price then obviously I would be selling the spread as I am selling V. This always caused confusion to the new clerks on the floor.
Papa, Why or what makes you buy sell any NG spread ? Why not do the outright front month ? What your reasoning in othr words. DO you use CQG ? Thanks