Volume on USM09 vs. USU09

Discussion in 'Financial Futures' started by Mike805, Jun 4, 2009.

  1. Dude, I am referring to the roll not being too exciting (relatively speaking)... Sorry for not being too clear.

    No, no cattle or lean hogs for me. I take delivery whenever I have a basis position and don't wanna do the roll.
     
    #21     Jun 8, 2009
  2. LVMises

    LVMises

    it's Herr Dude, thanks:D

    u must trade (invest) in a fairly niche market considering only 3% of u.s. treasury futures contracts are delivered into.
     
    #22     Jun 8, 2009
  3. Herr LVM, I am referring to delivery of cash bonds, specifically. I don't play in any physical commodity mkts.

    Delivery doesn't happen too often, to be fair, but it does happen and I have never had issues with it (actually, happened once, when an idiot colleague forgot that he was short into contract expiry; wasn't pretty).
     
    #23     Jun 8, 2009
  4. Institutional investors are rolling their positions. This normally happens 2-3 weeks before expiry. There is no exact timing. It's best to roll as the market rolls, Type TYU9 CMDTY GP <GO> and you can see that it conveniently shows roll volume vs time. We have a specific time we might want to roll, but if the market isn't rolling at that point we will wait 1 or 2 days. Brokers are transparent about this when you call them up. For example, "Joe, I want to roll TY contract today, what is market support" "Market can handle 15K right now" So instead of rolling 50K position, you roll <15K. Hope this makes sense.
     
    #24     Jul 12, 2009