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Rick Ratchford wrote:
>
> I absolutely have no idea about BB Trimmings, spreads or otherwise. Spreads
> and Options are two areas where I'm very weak and won't even attempt to
> explain them.
>
> What exactly did you find interesting?
>
> :)
Rick:
Basically the spread is between BB Trimmings ( Boneless Beef) future
contract minus Feed Cattle future contract. There are no options here,
that I'm aware , however you could still trade this spread with options.
The charts show that in every year since 1992 , there are consistant
peaks in July , and November for about 5 to 20 points ( average of 10 ).
I have not done any other investigations on this , other than it looks
like a good buy of the spread at the end of October, and a sell in
November.
This spread is similar in concept to the January effect spread in the
stock market ( something that happens with regularity every year).
Marcelo
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