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Currently there is no way for retail to do that, but rest assured, a brilliant guy might create that product for you very very soon in the form of an ETF (Just like GLD and SLV for physical gold and silver).

Yeah me too.

Check if TradeStation (https://www.tradestation.com/) offers this in their platform. As per my knowledge, charting such types of spreads (Option Spreads or multi-leg positions) is not offered by anyone (At least with a high level of accuracy). The spreads must be charted using Bid and Ask...

It doesn't mention when the negative strike options will be listed though, I assume it's very soon, but any idea when exactly?

If you are a Hedge Fund and you want to buy 100,000 shares of say AMZN stock and split this in chunks of 1,000 shares orders (Total of 100 orders), every separate order will have a unique ID. The broker still cannot front run, because he is obliged to execute the client order first. So it goes...

Because as long as there is no front-running, the broker is in the same boat anyway with his customers. The future is uncertain for everyone including the broker. The outcome of the trade is unknown to everyone (Including the most skilled traders).

Thanks. I didn't notice that it's only 4 halts in a session and then it's wild wild west. Thanks for sharing this, really useful. :thumbsup:

I believe yes, there is nothing (As far as I know) saying that halting for the rest of the day is possible. Only temporary halts as you mentioned. I mean heck they allowed it to trade negative and it went all the way to -$40, do you think they will shut it down for the day? I don't think so.

No I am not disputing anything. Ok, I will.

It's configurable. They will change it if needed & remove the lower limit effectively allowing the contract to trade in the negative prices.

Check this: https://www.cmegroup.com/education/demos-and-tutorials/understanding-velocity-logic.html It's too complicated to figure it out and must be programmed into your platform. Because it's dynamic, it will be difficult to keep track of it without getting it programmed. Also they...

If that's what he means, then I must have miss-understood it, as it was referring to the difference in price between the contracts as the loss.

I get your point about "The futures curve remains constant", but it's the spot price which the front month price converges to at expiration (Which does not usually appear in the futures curve mostly). Even if the futures curve remains constant in spreads between expires, you buy Jun CL for $35...

Heads up, USO is not shutting down, reverse splitting. https://finance.yahoo.com/news/uscf-announces-one-eight-reverse-114500706.html With all those capital inflows they are seeing (Primarily from Retail Investors), it would be dump & stupid from them to shut it down. It's a gold mine for them.

It's not exactly like this. You don't lose the $5 difference, you lose the difference between the price that you rolled over at (In your example $35) and the price you close out later when the contract nears expiration, which should be close to the spot price. When closing out the position...

Exactly, my take as well.

The Forbes article is trying to figure out the cost from the financial statements of Aramco, which is not correct or accurate since the financial statements of the company are consolidated and include many operations and many items. You don't get such details from a consolidated statement.

Just normal, the CL put option (If the underlying contract goes negative) will just keep increasing in price (Premium) as per the standard formula, put strike price - underlying price. We just learned for the first time ever 2 very important lessons, the first obviously is that commodity prices...

https://www.bloomberg.com/news/articles/2019-04-01/aramco-pumps-oil-at-fraction-of-rivals-costs-and-way-more-of-it + one more source: https://oilprice.com/Energy/Oil-Prices/Aramcos-Breakeven-Costs-Are-The-Lowest-In-The-World.html The $3 something cost mentioned by Bloomberg does not factor...

All depends on the ETF manager. It can reverse split, it can change it's multiplier (To be 0.5x instead of 1x), they can decide to shut it down (Although this is highly unlikely, since they are experiencing large capital inflows recently). Beware, the large contango in WTI futures is a strong...