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NE SD | Could one of you explain this a bit more? When you say sell the carry do you mean contract the physical now for say July so that you captured the carry in the market?
What do you mean by roll? Here if we roll a basis contract for example we get the new better futures price but lose it all because the basis will be wider. I've never been able to make money doing this here. The only way i can think it might work is sell the physical now into a further out month and then sell a call in the same month. Or better yet set the basis in that further out month and then sell the call and wait for a rally in the futures to add to my price but with both scenarios i'm still at risk in the market with the short call so couldn't really say that this is a smart idea.
Whenever i here roll or sell the carry i feel like i'm missing something because i don't understand how it would work here. | |
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Selling carry..
