CL - V/X calendar crushed 9/9

Discussion in 'Energy Futures' started by atrocious, Sep 9, 2010.

  1. Large move after the pit close 9/9 - any news or just thin holiday trading?
     
  2. heech

    heech

    I show the spread at $1.50 at pit close... and didn't move much after that. What were you seeing?

    What happened after Globex re-opened for CL futures at 6 PM EST?! CLV soared 1% in 15 minutes on no news, and no movement in currencies or equities.
     
  3. V/X just traded as low as 0.99 on Globex

    The entire spike you're talking about is almost all in the front month, X is little changed.

    Weird action!
     
  4. heech

    heech

    Oh heck, that's weird enough for me to trade a small position on the spread. Did you notice front month crack spread now looks weird as well?

    Just to be clear... This didn't start happening after NYMEX pit close at 2:30 set, right? After equity close?
     
  5. Correct, the move started around 4:00pm EST, bizarre time for a 40% move after doing nothing exciting in pit hours.

    Here's the culprit:

    http://noir.bloomberg.com/apps/news?pid=20601072&sid=aIZUd_F5eQxA
     
  6. v/x holding -.93 level for now, came off of there last night, we'll see how long that keeps.
     
  7. tyrant

    tyrant

    This is off topic but hope someone can help me out.

    I understand that the expiration of Oct CL is on September 21. Can we trade right till expiration day? What if we hold through expiration day? Do we go through the delivery process? How to avoid the risk of going through the physical settlement?

    Thanks a lot
     
  8. just don't be long the v/x spread or the v outright on expiration...simply sell out of it before hand and you should have no problems, considering the way it's trading right now expiration will probably be pretty insane and not worth trading, I'm not even being a wuss about this I'm serious when I say INSANE...imagine losing and making 1k at a clip one a 1 lot.

    Depending on what brokers you use they will most likely liquidate you before you to get to expiration anyway so you want to ask them how they handle it as to not have any surprises.