11/20/17 was down -$0.75 and the model projects that the component on yesterday's kill will dip between -0.40 and -0.75. The ZZZs are trading discount to the component by -3.00.
When the ZZZs opened higher, I said, "Wait a minute! We have a down trend going!"
So I sold a pair at 62.475..
They are now history and I was able to make a nice little deposit.
That model is really a nice trading tool when the front month gets near to expiration.
The calendar spreads just keep treating me well so I have decided to open the spigot a bit and it is really keeping me busy keeping track of what is coming and what is going. Consequently I missed posting the component change yesterday. It was down -0.59 to 64.58. And we will undoubtedly get another dip today, assuming the model is performing correctly.
Best wishes,
dhm