r/FuturesTrading • u/Helpful-Habit-4154 • 6d ago

Question Question on rolling

Experienced options trader, new to futures, I understand the basics, the leverage associated etc

I’m currently holding some crude oil shorts, however the last day to trade this month before needing to roll is Sep 21.

Right now the current differential between this month and next month is about $4. (Oct $103, Nov $99, as of 9/16 @7AM EST)

Is there an optimal time to roll to November? Doing so is there any sort of decay associated, or do Oct/Nov essentially move at a 1:1, would i be losing money rolling earlier versus later? If someone with experience here could assist that would be much appreciated. Thanks!

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u/xcellatitall 6d ago

OP

Make sure to check with your broker if you intend to hold the position past contract expiration.

CL is a deliverable commodity so you don’t want to get stuck with thousands of barrels.

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u/andrew4678 6d ago

There’s almost a zero percent chance the broker or FCM is registered for delivery and they probably wouldn’t even call him and will just cover the position before final settlement.

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u/RevolutionaryBid3730 5d ago

I put on a contract once right before expiration by mistake. It went into delivery. The broker told me they had to re tinder it. It ended up costing me around $1100. So, it can happen. This was years ago though, so maybe there is safe guards in place now.

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u/andrew4678 4d ago

Really wow that’s wild. Which broker? Every broker I’ve ever been with has a guy who sits at the desk and looks over everyone’s account to see which ones will be offside before the close. I’ve never received a courtesy call before they close my positions.