[fusion_text]I wrote a multi-part series for the Chicago Mercantile Exchange on Curvature Trading Applications. Below is a brief excerpt:
Curvature trading is one of the least-discussed tools in a trader’s arsenal. It has valuable applications in: (1) directional trading, (2) range trading, (3) options trading, and (4) market-making. Over the four issues in this series, I will highlight how an understanding of curvature in Eurodollar futures can be used to improve returns in each of these areas.
[/fusion_text][fullwidth background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”solid” padding_top=”20″ padding_bottom=”0″ padding_left=”” padding_right=”” hundred_percent=”no” equal_height_columns=”yes” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][flip_boxes columns=”3″ class=”” id=””][flip_box title_front=”1. Directional Trading Applications” title_back=”” text_front=”Use curvature to improve the risk profile of your directional trades.” background_color_front=”#ffffff” title_front_color=”#2ba0a3″ text_front_color=”#24272d” background_color_back=”” title_back_color=”” text_back_color=”” border_size=”1px” border_color=”#2ba0a3″ border_radius=”4px” icon=”” icon_color=”” circle=”yes” circle_color=”” circle_border_color=”” icon_rotate=”” icon_spin=”no” image=”” image_width=”35″ image_height=”35″ animation_type=”0″ animation_direction=”down” animation_speed=”1″ animation_offset=””]The first installment, on Directional Trading Applications, was released August 2014, and received a tremendous response. Here is a link to the article from the CME web site:
[button link=”http://www.cmegroup.com/education/files/curvature-trading.pdf” color=”default” size=”” stretch=”” type=”” shape=”” target=”_blank” title=”” gradient_colors=”|” gradient_hover_colors=”|” accent_color=”” accent_hover_color=”” bevel_color=”” border_width=”1px” icon=”” icon_divider=”yes” icon_position=”left” modal=”” animation_type=”0″ animation_direction=”down” animation_speed=”0.1″ animation_offset=”” alignment=”center” class=”” id=””]Read more[/button][/flip_box][flip_box title_front=”2. Range Trading Applications” title_back=”” text_front=”Some curve structures can trade in a profitable range” background_color_front=”#ffffff” title_front_color=”#2ba0a3″ text_front_color=”#24272d” background_color_back=”#9e9e9e” title_back_color=”” text_back_color=”” border_size=”1px” border_color=”#2ba0a3″ border_radius=”4px” icon=”” icon_color=”” circle=”yes” circle_color=”” circle_border_color=”” icon_rotate=”” icon_spin=”no” image=”” image_width=”35″ image_height=”35″ animation_type=”0″ animation_direction=”down” animation_speed=”1″ animation_offset=””]The second installment, on Range Trading Applications, was released October 2014. I expect it to be as popular as the first. Here is a link to the article from the CME web site:
[button link=”http://www.cmegroup.com/education/files/curvature-trading-parttwo.pdf” color=”default” size=”” stretch=”” type=”” shape=”” target=”_blank” title=”” gradient_colors=”|” gradient_hover_colors=”|” accent_color=”” accent_hover_color=”” bevel_color=”” border_width=”1px” icon=”” icon_divider=”yes” icon_position=”left” modal=”” animation_type=”0″ animation_direction=”down” animation_speed=”0.1″ animation_offset=”” alignment=”center” class=”” id=””]Read more[/button][/flip_box][flip_box title_front=”3. Options Trading Applications” title_back=”” text_front=”Option butterflies can give you a different perspective on value” background_color_front=”#ffffff” title_front_color=”#2ba0a3″ text_front_color=”#24272d” background_color_back=”” title_back_color=”” text_back_color=”” border_size=”1px” border_color=”#2ba0a3″ border_radius=”4px” icon=”” icon_color=”” circle=”yes” circle_color=”” circle_border_color=”” icon_rotate=”” icon_spin=”no” image=”” image_width=”35″ image_height=”35″ animation_type=”0″ animation_direction=”down” animation_speed=”1″ animation_offset=””]The third installment, on Options Trading Applications, was released February 2015. Several reviewers have said this was their favorite of the three:
[button link=”http://www.cmegroup.com/education/files/curvature-trading-part-three.pdf” color=”default” size=”” stretch=”” type=”” shape=”” target=”_blank” title=”” gradient_colors=”|” gradient_hover_colors=”|” accent_color=”” accent_hover_color=”” bevel_color=”” border_width=”1px” icon=”” icon_divider=”yes” icon_position=”left” modal=”” animation_type=”0″ animation_direction=”down” animation_speed=”0.1″ animation_offset=”” alignment=”center” class=”” id=””]Read more[/button][/flip_box][/flip_boxes][/fullwidth][fusion_text]The fourth installment is a work-in-progress.[/fusion_text][separator style_type=”none” top_margin=”10px” bottom_margin=”” sep_color=”” border_size=”” icon=”” icon_circle=”” icon_circle_color=”” width=”” alignment=”center” class=”” id=””][sharing tagline=” ” tagline_color=”” title=”Curve Advisor on the Chicago Mercantile Exchange” link=”http://www.curveadvisor.com/ca-on-cme/” description=”The Curve Advisor’s Curvature Trading Applications articles on the Chicago Mercantile Exchange.” pinterest_image=”” icons_boxed=”” icons_boxed_radius=”round” box_colors=”” icon_colors=”” tooltip_placement=”” backgroundcolor=”” class=”” id=””][/sharing]