Yeah but he was talking about peak demand next winter. That curve is completely flat! That curve is also seriously undervalued.
My belief is that if you are a good spread trader you can get better expressions on your views... Better risk rewards... But there is obviously a lot more going on with them
CDCaveman, how do you get better risk/reward on spread trades? I've been trading CL/NG (mainly front month outrights) the past year+ and the past few months also playing the calendar spreads...I never feel like I'm getting the same risk/reward trading the spread though. When I trade the spreads though I'm always having to increasing size and time frame, or just trading the rolls (where I'm basically picking up pennys in front of a bulldozer)...what are you looking for in spreads and how do you adjust your size accordingly?
Yeah I think energy is the one market where spreads might be more risky. However, I do think if you are patient, they can occasionally provide unique opportunities to make asymmetric bets. But I wouldn't want to arbitrarily be sitting in energy spreads every day. LOL.