Download This PaperAn Update on Weather Fear Premia Trades
11 Pages Posted: 21 Dec 2018
Date Written: December 4, 2018
Abstract
This article reviews a class of trading strategies known as “weather fear premia” trades. It argues that these types of trades may comprise a type of risk premium and notes the extra diligence needed in their risk management. The article notes that both superior trade construction and an analysis of fundamentals are also critical for their successful implementation. It concludes with a cautionary note on a catastrophic trading blow-up that occurred in November 2018, illustrating the risk of such strategies.
Keywords: commodity futures, risk premium, natural gas, coffee, corn
JEL Classification: G1, G11
Suggested Citation: Suggested Citation
Till, Hilary, An Update on Weather Fear Premia Trades (December 4, 2018). Available at SSRN: https://ssrn.com/abstract=3295441 or http://dx.doi.org/10.2139/ssrn.3295441
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.