Comment on Calendar Spreads

Nikil commented on 26 Jun 2018, 08:14 AM

Hey Karthik,
Please explain this part it is eating me.
All the sell trades presented above are on expiry. On that day the contract will expire.
Lets take 1 example from above 22-2-18
according to what is presented above.
current month- 272.45 [ Feb contract which got expired the same day] Closing price in feb contract.
near month -274.95 [April contract] How is April near month if current month value is taken from Feb contract.
Since the feb contract has expired one cannot take a long position there. So we need to initiate long in march contract but the closing price of march contract on 22-2-18 is 273.65 in which case there is no trade. All the trades above show the same problems.
long spreads are not so clear. Only reliable trades are short spread ones. I have tried on some other stocks as well. Most of them trigger the trades near expiry So same problem.
Please Explain.
Thanks.

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