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The Heating Oil – Gasoline Spread 2021 (Preview)

By Lawrence G. McMillan

We have been trading this seasonal spread annually every year since 1994, except for 1995. Last year, we rebounded with a nice gains.

McMillan Asset Management Announces New CTA Product

By Lawrence G. McMillan

McMillan Analysis Corp., dba McMillan Asset Management, is proud to announce the launch of its newest product. 

The Volatility Capture CTA strategy is a variation of Volatility Capture that uses VIX futures on a tactical basis to hedge, instead of purchasing VIX options on a continual basis. This pure futures version has a slightly different profit graph and has the potential for better returns in most cases due to the lack of drag from the purchase of VIX options.

Heating Oil/Gasoline Futures Spread

By Lawrence G. McMillan

Each fall we recommend a spread: long Gasoline, short Heating Oil.  This fall, the spread had its best year ever.  The entry date, Friday November 18th, was perfectly timed, as that was the highest the spread traded (see chart, below).  We entered at a price of 53, roughly.  From there, the spread plunged (in our favor) until it reached 21 (at $840 per point).  We lowered the stop to 28 after that, and were stopped out on January 4th.

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