WDIS Futures: Fourth Generation - July 7, 2017 - Questions Week 4




The tastytrade network show

Summary: For this segment of Futures 4th Generation Questions, Chris and Pete answer viewer questions on grain pairs, WASDE report/commodity volatility, and pattern day trade rules. Questions: · So, I’ve really had some success with Options in equity pairs and am thinking that grain pairs using options might be another great area to work in. I.E. Selling 30 Delta options in ZW / ZS as they seem to be fairly correlated. What other grain pairs might you suggest to look at? · I see the WASDE reports and have a better understanding of commodity products, but I do know that we are product indifferent, is there any weight to seasonality, weather issues (droughts, floods, etc), supply/demand or is all that already priced into the products? · Do futures options fall under pattern day trade rules as do their equity counterparts?