9/29/15 was up +$0.34. There are still quite a few holes in my data so the model is not able to project a change to the component but I'm suspecting it will be something like 0.50. Traders seem to be thinking that packers are going to continue to bid hogs higher and they have re-priced the VVVs to a premium of +2.20 over the component. Historically that is the way it usually works.

When packers were buying 69 and 70 calls we had a clear "Heads Up" that we should be buying and holding VVVs.

But I didn't.

Best wishes,

dhm