There is volume and spread. There is enough volume that the spread wont be $3.5 during regular hours, otherwise you would be seeing massive $3.5 spikes on the charts.
You haven't watched the future markets a lot during halts, pre-open and closes, have you. That is what the ladder looks like at times like this. Sunday night it will be right as rain. The settlement price is all you have to concern yourself with, because that is what they calculate your margin on. But you said margin is not a worry for you. So all good I guess.
Well, can I just say outright that you're not very smart. WHY THE F*CK ARE YOU TRADING A BACK MONTH WAAAAAAAAAY OUT IN THE FUTURE (OCTOBER????) (I'm amazed to know that Charles Schwab allows this?) There's a reason why people trade the FRONT MONTH. That's because it closely follows the spot market. That's where the action is and that's where most of the volume is.
Thats not even the main issue that indicates how smart he is. The main issue is that he is holding 7 contracts over the weekend. $70 a tick. $7000 a point
No, the main issue is that, since there's no volume, there will not be anyone he can sell to. No wonder there's a huge spread. Think about it.
Why are you yelling at him like that? "...My logic was that I may want to hold it until the economy fully recovers." That is swing trading logic right there, and maybe he is trying that tack. CL rarely violates the contango curve going forward for years. And it is not for the forseeable next few years if you look at the contract list. In fact, if you can get this at a reasonable price, like the last print, this is a good entry point... https://www.cmegroup.com/apps/cmegr...ue=1&monthYear=M2&year=2022&exchangeCode=XNYM
Spread will be less in regular hours. How much less i dont know. If its $0.1 then he still starts out $700 in the whole.
Oh, I get it. He must thought futures was like options! He thought he was deep-out-of-money options. Man, you are toast.