The Complete Guide to Spread Trading

by Keith Schap

Overview

Spread trading, a low-risk, high-profit technique, involvesbuying a contract in one market while selling a different contractin another market to profit from the imbalance betweenthose markets. The Complete Guide to Spread Trading coversthe step-by-step mechanics for successfully executing morethan 25 calendar, intermarket, interest rate, volatility, andstock index spreads. It explains both basic and advancedspread techniques and strategies, revealing market situationswhere spreads are most appropriate as well as clarifying whatit means to buy or sell a spread, and more.

Product Details

ISBN-13:	9780071448444
Publisher:	McGraw Hill LLC
Publication date:	07/28/2005
Series:	McGraw-Hill Trader's Edge Series
Pages:	320
Product dimensions:	6.20(w) x 9.10(h) x 1.25(d)

About the Author

Keith Schap is a former senior writer for the Chicago Board of Trade and senior editor with Futures. The coauthor of Seven Indicators That Move the Markets, Schap has contributed hundreds of articles to Futures, Treasury and Risk Management, Derivative Strategies, and other trade journals.

Table of Contents

Chapter 1	Introduction-A Motive for Trading Spreads	1
Chapter 2	Spread Trading Background	9
Chapter 3	New Crop-Old Crop Corn Spreads	25
Chapter 4	New Crop-Old Crop Cotton Spreads	39
Chapter 5	Unleaded Gasoline and Heating Oil Spreads	51
Chapter 6	Crude Oil Futures Calendar Spreads	63
Chapter 7	Treasury Calendar Spreads	77
Chapter 8	Kansas City Wheat-Chicago Corn	105
Chapter 9	White and Yellow; The Platinum-Gold Spread	121
Chapter 10	The Soybean Crush Spread	131
Chapter 11	Crack Spreads	145
Chapter 12	A NASDAQ 100-S&P 500 Futures Spread	155
Chapter 13	Stock Index-Single Stock Futures Spreads	169
Chapter 14	Yield Curve Spread Background	183
Chapter 15	The 5-Year to 10-Year Treasury Yield Curve Spread	195
Chapter 16	The 10-Year Treasury Note under 2-Year Treasury Note Futures	211
Chapter 17	A 10-Year Interest Rate Swap-Fed Funds Futures Spread	223
Chapter 18	A Review of Basic Options Features	233
Chapter 19	Bull Call and Bear Put Options Spreads	263
Chapter 20	More on Bear Put Spreads	275
Chapter 21	A Fed Funds Synthetic Binary Option	285
Chapter 22	A Flock of Option Butterflies	295
Chapter 23	Buying Straddles and Strangles	307
Chapter 24	A Corn and Soybeans Volatility Spread	317
Chapter 25	Options on 5-Year and 10-Year Treasury Note Futures	327
Chapter 26	Sell a Straddle or Sell a Strangle	337
Chapter 27	Call Calendar and Diagonal Spreads	351
	An Afterword	365
Appendix	Sources of Helpful Information	367
	Index	369