Out With a Profit
On January 15th, the IMC blog entered a hypothetical short position in the RBOB gasoline/crude oil spread. After some rollovers, we ended up in the August spread at the equivalent of $21.19 (premium gasoline).
On July 11th the position was liquidated at $13.34. This was done because the spread had undercut price support between the January 13, 2015 low of $13.24 and the February 9, 2016 low of $13.20 and then reversed higher, triggering a Wash & Rinse buy signal.
The trade resulted in a profit of +$7,850 per spread. We will now sit on the sidelines and wait until a new setup materializes.