PJM Blow up 5/31

Discussion in 'Energy Futures' started by sledged, Jun 1, 2011.

  1. sledged

    sledged

    Anyone see this thing trade $300 and clear the bal day somewhere around there. Haven't seen prices go to $999 for several years and for it to stay there for a solid hour is just ridiculous. Can't imagine how many stories must be out there of the p and l swings.
     
  2. Got flat @ $170, still a great day. I was thrilled when we went to $999... Been such a long time since I saw that...

    Gotta love it when PJM stops giving LMPs on a day like that...
     
  3. pwrtrdr

    pwrtrdr


    Where and why were you long ?

    Hope you waited until mid day to get the prints
     
  4. sledged

    sledged

    PJM definitely threw in the towel at one point and just showed max prices everywhere. I can only imagine how things would have ended up had their been triple digit temps, it was hot but not out of control hot to warrant those prices. Hundreds of millions of dollars changing hands in the blink of an eye. Wow.
     
  5. monty09

    monty09

    heard ML and Citi were on the P side.. HE 14-17 was scary
     
  6. Wasn't it because a couple of nukes went on FO?
     
  7. Limerick did go down over the weekend, but it was the perfect storm. I think alot of people doubted how high it would go. We had alot of hype in the previous week, and it was a non-event for the most part.

    Some poor guy sold $57s for Tuesday cin over the holiday. Ouch.
     
  8. sledged

    sledged

    Id love to know how many guys had +/- several million dollar days. The stories from that day will stick with them for their whole careers. Still not as large a move as the $1500 day in Ercot but when you think about how much more volume is in West Hub and Cin Hub even the scope of money changing hands is so much larger. Wild.
     
  9. sorry for being a little dense here. what's PJM? could somebody post the chart?

    this can't be it: PowerShare Dynamic Small Cap Port. (ETF) 23.63
    -0.38 (-1.59%)
     
  10. See attached chart. We are referring to financial swaps that settle against the power prices. Low that day in PJM was in the neighborhood of $107/mw , and we topped out around $300/mw.

    The multiplier on this contract is $800, therefore, just buying one contract could've yielded $150k (approx). Bid-Ask spreads get ridiculous, and PnL can swings are massive if you have any sort of size on.

    Oh yeah, and $120 calls traded $6 on Monday night.
     
    #10     Jun 3, 2011