Anyone actively trading calendars or flys in the GE complex? Red Mar/Dec looks to have bottomed out...
Hey ghoul. Happy New Year. I hear/see this past spring there were some nice moves in the some of the calendars on the short side. Do you trade the reds, greens or blues? How do you typically structure your positions? 3 months, 6 months, 1 year+ between legs ? I'm beginning to see that a lot of traders overlook & pay little attention to the US STIRS. Makes for good opportunities. J-Law
I do everything, mate... Wherever there's jooose to be had, I am there. At the moment, don't see anyting too exciting, tbh.
What do you mean by juice to be had? What makes you get in a trade on these? Is it that you have an expectation on where each should be and one is out of whack so you try to grab that? Or is it like an actual spread chart and you see that one has "bottomed out"? Trying to learn more about trading these, but it's pretty scarce on the info, mostly prop guys that do it I think.
Well, it's a combination of things, normally... I stare at the shape of the strip very hard and try to find stuff that appears out of whack (let's say, too steep or too flat or too convex or too concave or whatever). That suggests to me a spread or a fly that may look interesting. Once I have a candidate, I examine it by looking at its history, doing scenario analysis etc etc. If I like it, I get it on.
May have spoken too soon on the n/z/m3, but I would love some commentary on the steepness in the curve beyond Mar14.
Sorry, ogar, I just saw this... It's an interesting question that I have actually spent a good while pondering over. If you're still interested, I'd be happy to share my thoughts.
That would be great. I assume it has something (everything?) to do with The Bernank and his policy anticipations.