The widow maker spread ended in slight backwardation

Pavel Hála | Analyses | 26. 2. 2015

Unlike last year, when the widow maker spread expired in pretty wild backwardation, it finished yesterday in a quiet mood. But let’s explain a little bit about this spread. I’m talking about the interdelivery natural gas spread between March and April, NGH15-NGJ15. Consumption of natural gas is usually high in winter due to heating demand. Consumption…


Trading grains in the current environment

Pavel Hála | Trading ideas | 2. 2. 2015

Given the current uncertainty in general markets (VIX is above 21 right now), it seems wise to escape into some uncorrelated assets. Grains fit this criterion quite well, given their low correlation with major asset classes like stocks or bonds. I’ll focus on corn and soybeans because I don’t trade wheat regularly (I have nothing…