Friday, August 25, 2006

Rollover

Rollover is not too far from us.
And again the questions start appearing in the chatrooms I follow:
- When do we roll
- Shall I switch to December yet
and so on.

I have a simple answer:
Watch the volume in the current frontmonth
and the volume in the new contract.
The moment the volume in the new contract surpasses the volume in the expiring contract, it is time to roll and start trading the new contract instead of the old one.
Always good to let the market tell you what to do.
Have a great weekend.

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