Does anyone trade to profit from contango?

  • Thread starter Thread starter krugman25
  • Start date Start date
So many bizarre answers for such a simple question.

Let me give an example since it's not clear what I am asking

Krugman25: "Can someone tell me a strategy I can use if I think a stock is going to break out, but not sure what direction"

Some random EliteTrader user: "A long straddle is one strategy".

See, it's really not that hard.

While everyone was busy not answering my question I think I stumbled upon another strategy to trade contango, a futures long calendar spread.

Does anyone regularly trade these spreads, long the front month and short the deferred, and can offer their thoughts.
 
Last edited by a moderator:
"a futures long calendar spread"

Depending on the commodity that is a volatility or seasonality trade not a contango trade.

"So many bizarre answers for such a simple question."

That is because you are not bothering to understand why contango exists.
 
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