The Big Energy Trade: The WidowMaker
Category Business | Friday, March 12th, 2010A bold trade is unfolding in the energy markets, dubbed the “Widowmaker.” Traders play the spread between gasoline and heating oil, as seasonal demand shifts with the warming weather in the Northern Hermisphere. There seems to be larger bets on the market this year, as hot money is entering the trade. The trade is known as the “widowmaker” because of its volatile and unpredictable nature. However, traders are making larger speculative bets in gasoline after an unusually cold winter and an expected sharp increase in gasoline demand this summer.