March/April natural gas moved into flat/negative territory… Lots of supply, warm weather will do this… Note the CME chart below showing open interest in option strikes related to this spread… We’ve all ready blown through strikes with significant open interest… The spread option expires on Feb 25… The spread is known as the widowmaker because of it’s potential to move violently and blow up traders…
Here is a snapshot of open interest in natural gas spread options from the CME (G4H0 is the March/April spread option):
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