Rolling over positions

Discussion in 'Trading' started by Southpaw, Nov 9, 2002.

  1. Southpaw


    I'm new to trading futures. I have been trading equities with a longer term time frame, holding positions up to 9 months sometimes. If I'm holding some ES contracts come expiration in DEC, what is the best way to rollover the contracts if I wish to keep my trade going?

    I know I have to close expiring contracts and initiate next quarter's contract, but should I be doing this ahead of expiration? If yes, how many days ahead? Any suggestions will be greatly appreciated.

  2. bone


    Calendar Spread. For example, if you're long the Dec. '02 and you want to roll it, you would sell the calendar spread, which is to sell Dec. '02 and buy Mar. '03 in one order. That would leave you long Mar. '03 outright. But don't do until the Dec. contract is about to expire, because you want a tight spread market and the ability to get back out of the Mar. '03 if you want to . This is very hedge-fundish of you. They roll stuff for years.