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>I asked why they weren't prepared on Friday. What, exactly, do you expect them do to "prepare"? Friday they had more time to unload the contracts, and today
by aguyfromnb 6y ago
>I asked why they weren't prepared on Friday.
What, exactly, do you expect them do to "prepare"? Friday they had more time to unload the contracts, and today they have less.
- eru 6y agoHow to prepare: Sell futures on Friday, buy today (to close out the position). Profit from the predictable price difference.
- edoceo 6y agoWas it predictable tho?
- eru 6y agoWell, that was exactly the question!
- shadowgovt 6y agoYes, it was predicted successfully (by everyone who is no longer holding a contract). It was also not predicted successfully (by everyone paying through the nose so they won't have to find a place to stash some barrels of a volatile compound).
- eru 6y agoIt wasn't predicted successfully on average. Otherwise Friday would have already anticipated today's price.
- fredophile 6y agoHow far do you want to take that argument? If successfully predicting it would mean that prices dropped to zero on Friday then shouldn't that have also been successfully predicted and impacted the price on Thursday? What about Wednesday, Tuesday, Monday?
- eru 6y agoYes, that's exactly right. But no one expects perfect predictions far into the future.
- rocha 6y agoThey have been trying to sell, but none was buying. The closer you get to the expiration date, the lower you are willing to go to sell. Since contracts expire tomorrow, traders are willing to go all the way to avoid getting physical delivery.
- eru 6y agoThat's why I was suggesting the opposite: (Short-) sell last Friday, buy today at about 0 to close the position.