Does anyone trade to profit from contango?

Discussion in 'Trading' started by krugman25, Mar 4, 2019.

  1. krugman25

    krugman25 Guest

    So many bizarre answers for such a simple question.

    Let me give an example since it's not clear what I am asking

    Krugman25: "Can someone tell me a strategy I can use if I think a stock is going to break out, but not sure what direction"

    Some random EliteTrader user: "A long straddle is one strategy".

    See, it's really not that hard.

    While everyone was busy not answering my question I think I stumbled upon another strategy to trade contango, a futures long calendar spread.

    Does anyone regularly trade these spreads, long the front month and short the deferred, and can offer their thoughts.
     
    Last edited by a moderator: Mar 4, 2019
    #11     Mar 4, 2019
  2. jeb9999

    jeb9999

    "a futures long calendar spread"

    Depending on the commodity that is a volatility or seasonality trade not a contango trade.

    "So many bizarre answers for such a simple question."

    That is because you are not bothering to understand why contango exists.
     
    #12     Mar 4, 2019
  3. krugman25

    krugman25 Guest

    Thanks

    I do. Thanks.
     
    #13     Mar 5, 2019
  4. Sell any 30d+ future on the curve. Turn off pc. Wait 30 days. Turn on pc. Cover your short futures.
     
    #14     Mar 5, 2019
  5. krugman25

    krugman25 Guest

    :banghead::D
     
    #15     Mar 5, 2019
  6. ajacobson

    ajacobson

    CBOE makes these available for free.

     
    #16     Mar 6, 2019