PLEASE! Need help getting out of a front month!!

Discussion in 'Trading' started by anasamas, Nov 4, 2011.

  1. anasamas

    anasamas

    I'm currently short 6 Nov. OJ contracts thanks to a recommendation from an "experienced analyst". Not only have prices risen but it will expire next week. My broker says I have to be out by Monday's close. The problem is that volume has ground to a halt. There were all of 4 contracts traded today, Friday, November 4th. If there isn't more liquidity on Monday. The broker will liquidate at the market on Tuesday and I could get killed. PLEASE...if anyone has a way I can flatten this position without being clobbered, let me hear from you!
    Thanks
     
  2. sorry to be blunt but you have already been wounded. you are just not dead yet. you have no choice. take the loss.
     
  3. Lucias

    Lucias

    Put in your limits and hope someone hits you?
     
  4. just curious why you are naked...
     
  5. I guess you can't deliver some OJ?

    Threes nothing on tge bid/ask?

    What's the symbol?

     
  6. I do not follow OJ, but one method maybe be as follows..

    Buy the X/F spread, buying the X.

    This would leave you nakedly short F.

    F likely has more liquidity and gives you more time to get out. I'd suggest that if you don't know what to do, just get out.


    Another possibility might be selling TAS, locking in the settlement price.
     
  7. Well if nothing else you will have learned to check volume on something you are trading and trusting advice of an expert too. Getting out of 6 contracts should not be a problem if trading any decent sized market.
     
  8. anasamas

    anasamas

    "Buy the X/F spread, buying the X.
    This would leave you nakedly short F"

    I'm fine with being nakedly short January. This is the calendar spread and the way the broker set it up..leg by leg, it didn't help. Is there another way that would work?


    "F likely has more liquidity and gives you more time to get out."

    How does it give me more time? I have a deadline of Monday's close to get out or they'll get me out the next day.


    "Another possibility might be selling TAS, locking in the settlement price."

    I checked into this. Don't think it is allowed this late in the game. ICE states on its website:
    "Note that once a futures contract month has gone into its’ Notice Period, the contract is no longer eligible to be traded via TAS (outright or as a Spread)"

    Since expiration is Wednesday, I think I'm past that point, no?
     
  9. anasamas

    anasamas

    "Buy the X/F spread, buying the X.
    This would leave you nakedly short F"

    I'm fine with being nakedly short January. This is the calendar spread and the way the broker set it up..leg by leg, it didn't help. Is there another way that would work?


    "F likely has more liquidity and gives you more time to get out."

    How does it give me more time? I have a deadline of Monday's close to get out or they'll get me out the next day.


    "Another possibility might be selling TAS, locking in the settlement price."

    I checked into this. Don't think it is allowed this late in the game. ICE states on its website:
    "Note that once a futures contract month has gone into its’ Notice Period, the contract is no longer eligible to be traded via TAS (outright or as a Spread)"

    Since expiration is Wednesday, I think I'm past that point, no?
     
  10. Hedge with FCOJ options. Get Delta neutral.
     
    #10     Nov 5, 2011