Thursday, December 15, 2011

Tried a calendar spread trade today on natgas for a change

Fed up of going in only one direction on natgas lately, I decided today to enter into a calendar spread prior to the release of the EIA injection/withdrawal numbers this morning. I was short January/long February contracts. After the release the market spiked up... and down within seconds so I wasn't really able to exploit discrepancies between prices during that short a time span. Nevertheless, after maybe a little more than 1 hour into the trade I finally closed the spread at a small profit. I may try this more often in the future and possibly with bigger size next time. I like the fact that the risk is relatively low on that type of transaction. My other trades today were pretty much "standard" short-term trend following as usual. All in all a trading day than ended in the green. Net result +$797 trading 2 contracts (commissions included). Details below.

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