Posted 6/10/2021 22:50 (#9052587 - in reply to #9052422) Subject: RE: Something is amiss...
You’re only seeing part of the picture . Having limits that are proportional to the price is why they are re-examined 2 or 3 times a year. If market participants want to get out of their position, what’s the difference between bet up (or down) $.50 in 1 day, or $.10 five days in a row. Not going to able to get out until finding a place where the market will trade, so the less time locked limit the better.
Basis ‘crashes’ when enough supply has been procured. No need to overpay for something you don’t need.
And , it has been talked about on here for the last few months that commercials will be quick to move to bidding basis the deferreds , not because ‘they’re cheaper’ but rather because they are less volatile.
There’s no difference between +.10 July and +.70 sept ….