Rick Santelli--Assertion--All CL Have To Take Physical Delivery?

An extraordinarily noob question but:

Can CL Future's behave like options in that the clearing house can nominate your contract for delivery if someone on the other side of the transaction exercises?

Or is there no other way to take delivery other than be holding the future at expiry?
 
Quote from BlueStreek:



But if 2/3 of price discovery is done on the ice, and the ice is cash settled, could this be a counter argument to RS`s assertion?
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Not really. A non-deliverable futures contract is not a necessity for speculation. There have been speculative bubbles in art, classic cars, tulips, property, swamp land - none of which have futures contracts and all of which require delivery and storage/ownership. Therefore front-month oil - which potentially requires delivery, but is otherwise far more fungible, storable, and liquid (no pun intended) than those other products - can also be speculated in.
 
Quote from nokomisjeff:

Who would have ever thought we would see a bushel of Minneapolis wheat sell for 25 bucks:)
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Anyone who has seen one full bull market in anything would have known it was within the realm of possibilities.
 
Quote from cipherscribe:

An extraordinarily noob question but:

Can CL Future's behave like options in that the clearing house can nominate your contract for delivery if someone on the other side of the transaction exercises?

Or is there no other way to take delivery other than be holding the future at expiry?
More...

After the notice period, then yes, you can get assigned. It all depends on the specific contract specifications, which anyone trading any contract should ALWAYS know better than the back of their own hand.

Two ways to learn: the easy way is to read the exchange contract specifications on their website, and ideally talk to an exchange official (and your broker) and ask lots of questions. It's free after all. The hard way is to have a position on and get called to delivery, then have to scramble to find an offsetting cash position before you default. Expensive, stressful, and not recommended. I'll let you guess which one I did lol.
 
Quote from Cutten:

Expensive, stressful, and not recommended. I'll let you guess which one I did lol.
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Yea, I am speaking from an option's catastrophe standpoint. I was assigned on a leg of my calendar spread many moons ago, and it hurt so much, I still ask these types of questions, many, many years later.

I will certainly check the contract description.

Are you saying you cannot be called for delivery before the notice period? When is that typically for CL?

Thanks!
 
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