Time to Go Long on Live Cattle Spread
Darren Carlat of SpreadEdge Capital - InsideFutures.com - Thu Jul 11, 7:03AM CDT

The Live Cattle (Q19-Z19) calendar spread has eased down of late and provides a good entry into its' seasonally positive period. The spread has profited 12 of the last 15 years when purchased on 7/11 and then sold on 8/5. The profit to draw-down ratio is strong at 120% and the best win year versus the worst loss year is nearly 2:1. We still have a short LC trade on that we will close tomorrow so this trade will essentially make us flat today (if filled). Today, I will be buying the Live Cattle (Q19-Z19) calendar spread at or near the current price.