I like how you refer to it as "she" . . . must be influenced by the bikini warrior girls next door . . .
Yes some of the positions may be from the same group.......but trust me, you will DEFINITELY see a reaction in price as we trade into the delta zone at 876's to 872.75 You will see either very strong buy reactions or a big dump out of the 876-872.75 delta zone......there is still HELD resting inventory that was established in that area (and was rolled over to the new contract). BTW, I do pay attention to the full contract
I actually do believe you when you say that there'd be a reaction off of 876s but, how did those positions exactly rollover if we haven't yet touched the zone in Septs?
Is it possible to opt to continue a position at the expense/profit of basis (from one contract to another) . . .? If so this'd be new to me . . . and something I've learnt . . . at the expense of showing off my noobness . . .
How on earth do you tell that positions from 878 were transfered over to the new contract if it's never even hit that price yet? As I understand the longs from 878 would have to cover and repurchase to roll over? Or do they let you hold if your in profit when a contract rolls over?
When you rollover to a new contract of course you would buy in at whatever price you paid at order entry (while then locking in profits from the closed out contract). But the held position "origination" cost basis was from the 876's area for the previous contract (for those held LONG's from the lower delta zone discussed). Yes the position has to be rolled over to the new contract to maintain the position, but the "origination" cost basis for the held position started from the delta zone pricing area. If price trades back to those support levels "on paper" those remaining positions would be at/near b/e from the point the overall position was first originated (counting in the "booked" profit from the closed out previous contracts).......if price trades 876's then the originated LONG positions from that delta support zone last month will be back to b/e of the trade origination point.
The rollover is just a mere technicality to maintain a position going forward (you "book" the profit from the old contract and then initiate new entries in the new contract to maintain a held position).
I recall the sep was in backwardation trading 4 pts lower than the June including the risk free rate, so i think you shouldy be sniffing around the 872's in that case