Quote from jack hershey:
The span of the front month (three months usually) is something that is ever changing in the number of outstanding contracts
The span of the front month is something that is ever changing in the number of outstanding contracts.
Talk about non sequitur.
The span of the front contract doesn't change. The number of contracts doesn't change the span of the contracts. It expires on the date of expiration, each and every time. Time is fixed. That is the point of a dated contract, isn't it? To have a date at which it matures?
Contracts are created when a buyer or seller agree agree to make a sale/purchase against another party, but the nature of the contract is fixed. The nature of the contract, and the expiration date is determined by the exchanges. The buyers don't determine the nature, or span of the contract. They can terminate their positions, and cancel out a contract, but they did not create the concept, expiration date, or rules of the contract. They just agreed to manufacture a contract on the basis of the rules of the exchanges.
You could say, that each day, the length of the contract is reduced by one day. That would make sense.
You could say that amount of time remaining on a contract will influence people in their decision to hold a contract, but they cannot change its span. The number of contracts is irrelevant to the length of a contract.
Or you could say that the number of contracts changes as people open and close them.
But what you said is total insanity, a non sequitur. Even Ronald Reagan in his most deranged state couldn't say anything quite as incorrect.
Don't you people see that this guy is a total fruitcake?
