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What Does the Miami Heat Win Streak Have to Do with Spread Trading?

As many basketball fans may know, the Miami Heat recently had a 27 game winning streak, which was the 2nd longest winning streak in NBA history. It ended on Wednesday, March 27, 2013 when they visited my Chicago Bulls in a game that a lot of folks thought the Heat should have won easily. The… Read More.

Looking Ahead to the January 11th 2013 USDA Report

This is a sample entry from Craig Turner’s weekly market analysis newsletter, Turner’s Take, published on January 8, 2013. On Friday, January 11th at 11:00 am central time, the USDA will release the January WASDE, Annual Crop Production for Corn & Soybeans, December 2012 stocks, and Winter Wheat seedings. The January 11th USDA report is… Read More.

Corn Butterfly Futures Spread

This is a sample entry from Craig Turner’s weekly market analysis newsletter, Turner’s Take, published on August 29, 2012. We have an interesting opportunity in a Corn futures butterfly spread this morning. For those of you who are not up to speed on futures butterfly spreads, please read this Daniels Trading blog article written by… Read More.

A Real Life Example of How Futures Spreads Reduce Market Volatility

Recently, I had a number of clients involved in a futures spread in the live cattle market. The idea behind the trade was to get long the cattle market heading into the summer by buying in the front month and selling in the back month – specifically, they were buying June Live Cattle and simultaneously… Read More.

Futures Spread Techniques: Butterfly Futures Spread

Savvy traders, who understand the term structures of futures markets, often use the butterfly futures spread to isolate certain contracts in which they feel demand or supply will be the strongest or weakest. Some people are only aware of the options version of this trade (read the past article). While the futures version of the… Read More.

Futures Spread Techniques: The Bear Spread

Traders with bearish views of the economy need to tread lightly while commodities are at current prices. Due to easy money, algorithmic trading programs, a shrinking world and massive geopolitical risk, playing any market with an easy defined “buy” or “sell” stamp on it can be a difficult trade to sit through. In a market… Read More.

Reap the Benefits of Spread Trading

The sayings go, “you can’t teach an old dog new tricks” and “if it isn’t broken don’t fix it”. We get it – we will leave the old dogs alone. Then again, how come no one ever talks about teaching new dogs old tricks? There is a trading style, as old as the exchanges themselves,… Read More.

Credit Spreads: Collect Premium While Keeping Your Clothes On

Readers of this blog should be very familiar with option spreads. We have written in the past (Option Spreads Examined Further: Measured Ways to Play Your Market Hunch, Bear Put Spreads: An Alternative to Purchasing Puts, and Bull Call Spreads: An Alternative to Purchasing Calls) about the different ways traders can participate in leveraged markets… Read More.

Option Spreads Examined Further: Measured Ways to Play Your Market Hunch

New option traders tend to overlook the strategy of combining two options to form spreads, which allow different degrees of market optimism or pessimism.  Option spreading is different than futures because a straight futures play only portrays one degree of bullishness/bearishness.  If one is long the futures, he better be very sure the market is… Read More.

Bear Put Spreads: An Alternative to Purchasing Puts

Options are a great way to get involved with the futures markets.  One of the most popular ways to trade with options is to buy puts.  This provides traders a way to trade the futures markets with a defined risk and unlimited profit potential.  One of the downfalls of purchasing puts is that they can… Read More.