reason this trade seems to work so well now is because the implied volatility is so very high.
But -
We are getting close to the point where the seasonality factor is about click in. The market has priced in a 39.4% jump in the index by the time the NNNs go to cash settlement. If my target of 90 in the Index is hit, it will be a 52.2% jump. The seasonality factor in the hog market is more consistent and of a greater magnitude than any other market that I have observed.
This is a work in progress so stay tuned.
Best wishes,
Doc .