Does anyone have any experience trading these products? Specifically spreads. Any information about them is appreciated.
I asked my colleague Mark O'Brien, who trades and assist clients with spread trading to inject his thoughts: The below is Mark's personal opinion and traders are urged to exercise their own judgment. One of the best sources of information and trade guidance related to trading RBOB and Heating Oil and particularly the RBOB/HO spread is Moore Research Center (https://www.mrci.com). They specialize in research that looks for seasonal patterns in futures and futures spreads caused by conditions and events that repeat annually, like the cycle of weather from warm to cold and back to warm. The theory is that annual cycles like the weather result in seasonal price movement – to a greater or lesser degree and in a more or less recurrent manner. In other words, an annual pattern of changing conditions can cause an annual pattern of price responses. Moore Research calls this a market's natural rhythm. They look at a wide variety of markets, so anything related to RBOB & HO is sprinkled among others: grains, livestock, softs, metals etc. Having subscribed to Moore Research and traded their ideas for over 20 years, we’re quite experienced in navigating their web site and explaining their material.