STIR Curvature Trading

In Fundamentals and Data, Markets, Options, Spreads, Technicals by Guest Author

About the Course

Curvature trading is one of the least-discussed tools in a trader’s arsenal. It has valuable applications in: (1) directional trading, (2) range trading, (3) options trading, and (4) market-making. Over the four issues in this series, I will highlight how an understanding of curvature in Eurodollar futures can be used to improve returns in each of these areas.

About the Author

Joseph Choi is the founder of advisory firm ‘The Curve Advisor’. Mr. Choi was a senior proprietary trader in J.P. Morgan’s Global Currencies and Commodities Group. He was consistently profitable in trading Eurodollar butterflies over his seven year trading career. He was one of the largest discretionary users of Eurodollar futures and options, trading well over 10 million contracts a year. Mr. Choi started the Curve Advisor newsletter to discuss trade-specific market views on the Eurodollar curve and to help clients explore opportunities in curvature trading.