Does anyone know when crude etfs roll their futures contracts? The article below (from yesterday) says USO rolled their contracts last week.
https://www.forbes.com/sites/jimcollins/2020/04/2…
If it's a common theme to roll a week prior to expiration, then I'm assuming the short crude etfs didn't realize the massive long squeeze yesterday?
I dont think you know what investment bankers do
This question is about ETFs not investment banking? Take it easy brotha.
was just making a joke as you posted this in the ibanking forum
the crude oil ETFs generally roll over the course of a week..starting 10 days before the contract roll. you can see this by looking at the open interest on the daily chart (blue line in the lower panel with volume).
ETFs are generally about 30% of total open interest...and the market tends to front-run their very predictable flow in the calendar spread
ETFs, while generally the biggest, are not the only players...banks and hedge funds play in the calendar spread with large size...and i'm sure lots of people who should not have been participating thought it was crazy for oil to trade so cheap (which is why they got stuck long)...this happened to Amaranth in NatGas a number of years ago
USO held 25% of the expiring May contracts last week, the ETF's are massive players
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