Short front month, long back month. Expecting the next week of trading to be low volume and to get choppier until FOMC day.
Closing positions- Should've closed these yesterday when they were making money, but was too busy at work. I'll do better on my new positions.
New Positions
Hedged biased YM/ER2 trade,
Long 1-3month BIL until Oct 30th.
Short back month 30 day fed funds. (I should have shorted the front month with a long on the back month, Oh'well, lets see what happens)
Short Eurodollar, long ZB , seeing if this is a good hedged/spread trade.
Questions-
How much premium is based into index futures. For example if you go Long DIA & short YM, does this equal a hedged trade where you collect premium on futures contract and recieve dividend payouts on DIA.
I'm looking at the new BIL; ETF, and ways I can make money using it to outperform my savings account. If I use 2x leverage in my brokerage account, will this outperform my savings account interest rate of 5.25%? What are the risks, and what are the tax advantages/disadvantages? What interest will I pay my broker from the overnight loan, and is this a wise choice? Should I collect the interest payout each month, or should I attempt to trade this ETF between the payouts and look for arbitrage opportunities between this ETF and the underlying bills? How will the commissions costs contribute to my overall profit/loss for this trade? Would an IRA account be best for this type of trading? Will I still receive interest from my broker if I use my margin account and take a position overnight?
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