When one of your short spread positions is becoming uncomfortable to hold, it time to make a Stage I adjustment. (blog.mdwoptions.com)
The foregoing position limits shall not apply to bona fide hedge positions meeting the requirements of Regulation 1.3 (z)(1) of the CFTC and the rules of the Exchange, and shall not apply to arbitrage positions and inter-commodity spread positions subject to Rule 559. (cannontrading.com)
The foregoing position limits shall not apply to (1) bona fide hedge positions meeting the requirements of Regulation 1.3 (z)(1) of the CFTC and the rules of the Exchange, and shall not apply to arbitrage positions an inter-commodity spread positions subject to Rule 559. (cannontrading.com)