Bund Bobl Schatz Fly

[arabianights]

I hope Im not making a complete fool of myself here haha

On the contrary it's great to have people discussing typical prop/arcade trades rather than gasping in awe at huge macro plays or random squiggling on charts like 99% of this site

 

[Martinghoul]

The one thing that, I think, you need to do is just try to understand the dynamics of the yield curve and what sorts of fundamental factors actually drive interest rates (there are only three). As always, I would recommend the old Solly 'Understanding the Yield Curve' series of papers.

 

[novish]

Perfect! Thanks a lot, gonna try to find that directly!

 

[arabianights]

You can find it here: http://www.classiccmp.org/transputer/finengineer/

Scroll down to the solly section

 

[novish]

Thanks! Nice to see that this forum contains so many helpful and friendly members! to all of you, thank you very much!
/novish

 

[Aston1st]

@Novish,

I was being serious , put downs are not my style unless provoked (Lol). I have been trading basically on the technical charts and levels, have tried to read some of the papers on Bonds then the formulas make me dizzy : 0 .

What some of the more senior members have posted I shall have a look at also. I am very interested in the Relative Value of the Fly and the general Cost of Carry for the Bonds, it seems, and I am happy to be corrected, that the Schatz's is trading at sort of in Backwardation\Premium mode. But I am not sure exactly why this affects the Fly as a whole.

Also the 5 - 6 tick range is quite dangerous as it's too easy to get legged when coming out of it. Am looking at the idea of autospreader ------- Any views out there on Auto Spreader rather than trading it on the outrights ?

Thats what I love about trading you are always learning something.