Stocks & Commodities V. 44:04 (24–29): Trading The Crack Spread by Perry J. Kaufman
Product Description
Trading The Crack Spread by Perry J. Kaufman
A “crack spread,” the price difference between crude oil and the refined petroleum products made from it, and the crack spread trade, with a widening or narrowing spread, is often used to hedge or speculate on whether refined products like gasoline, diesel, or heating oil will outperform or underperform crude. Here’s a look at this type of trade, and code so you can test it for yourself.
The crack spread is a commercial arbitrage. It reflects the way an oil refiner buys crude oil and sells their final products—gasoline and diesel oil (although there are also other by-products) ...
A “crack spread,” the price difference between crude oil and the refined petroleum products made from it, and the crack spread trade, with a widening or narrowing spread, is often used to hedge or speculate on whether refined products like gasoline, diesel, or heating oil will outperform or underperform crude. Here’s a look at this type of trade, and code so you can test it for yourself.
The crack spread is a commercial arbitrage. It reflects the way an oil refiner buys crude oil and sells their final products—gasoline and diesel oil (although there are also other by-products) ...
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