Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
To trade a fly in terms of the calendar would be
- To buy the Z1/Z2/Z3 fly, I would buy the Z1/Z2 calendar and Sell the Z2/Z3 calendar
- To sell the Z1/Z2/Z3 fly, I would sell the Z1/Z2 calendar and buy the Z2/Z3 calendar
Right?
So in reality, looking at the DOM right now,
the Z1/Z2 has a bid of 1.36 and an Ask of 1.60
the Z2/Z3 has a bid of 0.60 and an Ask of 0.73
So if i am selling the Z1/Z2/Z3
Sell the Z1/Z2 at the bid of 1.36 and buy the Z2/Z3 at Ask of 0.73, puts me at 0.63 cents or work the legs in the middle???
I know a pretty basic question but want to know if the data i am collecting and the way i am able to trade will actually match
Can you help answer these questions from other members on NexusFi?
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,057 since Dec 2013
Thanks Given: 4,399
Thanks Received: 10,225
Rig count was down 9 on Friday, back to 860, Nay 25th was 259 so we've gained 1 rig in the last 3 months. In addition the COT non-commercial net long dropped considerably last week (34k) and is now at its lowest level since mid November last year.
Monday 11:06 Eastern. 140/144 and 75/83 so 57/69
I use an autospreader. So if I was a 65 seller, the autospreader would offer z1z2 @ 134 and join the z2xz3 bid at 75.
I'd be careful putting legs down past z0/z1
The biggest problem is the lack of sufficient pipeline capacity to move oil from shale wells ... But production in the Permian Basin has also been constrained by shortages of labour, equipment and materials, which have pushed drilling, pressure pumping and completion costs sharply higher ... Midland crude is currently trading at discount of $14 per barrel compared with Cushing, while Cushing is itself priced at a further discount of $10 to Brent.
Open Interest seems to be in a sharp decline since May... I am thinking on buying a couple of USO Puts, hopefully have vega help my case with an increase on implied volatility. This shall balance my long SPY calls. I guess we'll see on Monday.
Update: I am taking back what I said on the trading position, not because I am not short biased but I have never really backtested this trade.