Haven't traded a one crack spread yet. But from nymex website you will see that it is entered as one trade. Not combo. So you don't need a fancy broker to do anything other than just give you access. http://www.nymex.com/media/crackspread.pdf
Gulp - Crude hit an intraday level of $40 a barrel. I talked her out of this trade. Today, she walked in the house and looked at me out of the corner of the eye only. If I had put on the trade (long QM,which is what she wanted) and it had been wrong, the response would have been "I don't know what I am doing, _YOU'RE_ the one that's supposed to know - why didn't you talk me out of it?" nitro <-- can't win
you know what nitro? That's funny that you should post this thread again, I was just thinking about it before even logging into ET. And there it is on the front page I'm psychic too! What a happy family.
Sounds like a perfect opportunity to explain about the Personal Responsibility aspect of trading - 'course, this might get you a few cold nights on the couch... My wife, a beginning scalper, actually has it in her trading plan to ignore my musings, prognostications and comments while we are trading LOL I told her "just fade me, and one of us will make money every day..." Paul PS Why did you talk her out of that trade?
I understand you're missing out on a trade, but you could also be caught sleeping as first bomb drops and crude is getting punished oversees.
Paul, I honestly did not know what the correct position was to take. In retrospect, long QM would have been juicy, but it seems MUCH too risky for me. Long calls would have required a 2 point move just to break even - I hate paying premium. Long QM, short OIH was a strong possibilty, but when I tried to explain to her why this might be the best play, she just said she wanted long QM... nitro
I agree completely. Another reason why in retrospect, it was not such an easy trade. _NOW_, the endgame has gotten really interesting. My guess, long OIH, short QM, all using options, in the right ratio. These two are _WAY_ out of whack now. nitro