CA on the CME
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.
1. Directional Trading Applications
Use curvature to improve the risk profile of your directional trades.
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:
2. Range Trading Applications
Some curve structures can trade in a profitable range
The second installment, on Range Trading Applications, was released October 2014. It was also well-received. Here is a link to the article from the CME web site:
3. Options Trading Applications
Option butterflies can give you a different perspective on value
The third installment, on Options Trading Applications, was released February 2015. Several reviewers have said this was their favorite of the three:
The fourth installment is a work-in-progress.