Recent content by panaceus

Thanks, I appreciate it.

I am certain that they would:) However I do not, beyond some knowledge of Incoterms. I'd like to familiarize myself a little bit if possible.

Suppose a company were interested in purchasing a large quantity of crude oil futures, with the intention of taking delivery. What might they need to consider that isn't an issue for retail traders? Transport is presumably one of these. Is there a size at which an open-market purchase might...

My ToS account password is currently not working, and judging by Twitter I'm not the only one. Just a heads up. Apologies if this has been mentioned elsewhere.

Does anyone have insight as to whether option 3 is viable? That is, simultaneously reselling the short call and using the proceeds to close out the futures position? It seems like it should reconstruct the position while capturing the remaining time value of the exercised option, if the market...

I see what you're saying. I'm assuming that my overall account position would be distressed by the assignment, and so that wouldn't be possible. Thanks for the clarification!

The underlying is the futures position though, yes? I had thought all three suggested options were variations on that theme. Or am I missing something? EDIT: Future is not actually cash-settled, but I will need to pay cash to close it.

I'm trying to assess a bear call spread in /CL. I've looked through a few threads on early assignment, but I'm hazy on when the futures and options markets are open/liquid. Supposing my short call goes ITM, and is for some reason exercised early--what's the best reaction after I receive my...

Good to know. Thanks!

Sorry, I should have been clearer. I couldn't unravel those two ideas (counterparty risk and liquidity characteristics) in the piece I linked. By liquidity characteristics, do you mean the relative ease of unwinding the positions? As for the 1y LIBOR vs 1y Euribor, I believe I am referring...

The most relevant item on this that I could find was here: http://uk.reuters.com/article/2010/03/12/holdmarkets-money-idUKLDE62B0QF20100312 It says: "During the financial crisis, as money markets dried up, 6-month rates rose more sharply than 3-month rates due to a lack of lenders...

I suppose you'd incur counterparty risk on the last three months of your investment--is that what you mean? But I'm not sure the cost of purchasing a CDS on a typical European bank would erase the value of the interest rate gap. [Edit: Whoops, maybe it does]. I was working off page 8 of...