There were a number of trades for the NYM region earlier this week including one for the NYMX17 (Nov 2017) contract. While traders would love to see tight markets 4+ years forward (5 when the Nov ’18 contract is rolled out in 2 months) how can one expect narrow bid-ask … Read More
I’m back from vacation and am pleased to see that many bid/ask spreads have tightened and some trades have occurred over the last week. Most of the trading seems to have been in the calendar spread markets focused on the Aug/Nov ’13 spreads. (I saw trades in DEN, SDG and … Read More
I introduced a new graph in the May review that I think will help anyone looking at prices across the front three expirations. I barely commented on the graph in the review. Now, with the benefit of more quotes since month-end, and some tweaking of the graph, I’d like to … Read More
Friday I teed up ten intercity day orders for the May ’13 contracts. While I’m open to continuing that discussion, today I want to focus on the other end of the expirations -the Nov ’17 contracts.
Unlike the May ’13 contracts where near-term outright price forecasts might cover a narrow … Read More
With the May ’13 expiration in just three weeks, and a handful of recent K13 trades (LAV, MIA, NYM), I thought that it might make sense to focus on front-contract markets.
The following table shows the recent history of each of the 11 traded CME reference indices as well as … Read More
If inter-city spread trades are going to be a focus for 2013 then it might help to explain what they mean. That was the “constructive criticism” from one reader. Point noted.
Let me use a rivalry that New York traders might relate to: New York vs. Boston. After all saying … Read More
I was recently reminded that for all of the discussions here on pricing, that I hadn’t shown a basic “how to hedge” example using the CME Home Price futures. Let me rectify that with the following illustration.
The graph to the right illustrates the P&L impact of a change in … Read More