HEV17 – 2*HEZ17 + HEG18 Butterfly Spread

Today we consider a Lean Hogs Butterfly Spread: long 1 October 2017, short 2 December 2017, and long 1 February 2018 Lean Hogs (elec. symbols: HEV17 – 2*HEZ17 + HEG18 or HEL1V17 on CQG). For the next few weeks, the spread usually moves to the up-side as shown by the blue (15 year seasonal) and red (5 year seasonal) line on the chart. Will this also happen this year? Of course, we never know for sure but the spread closed higher on 10/06 compared to 09/07 each year during the last 20 years. Statistically speaking, there is a high chance we will see higher prices of the spread during the next few weeks.

Lean Hogs Butterfly Spread