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Conrad Bowers wrote:
>
> John Ahaus wrote:
> >
> > Don S... wrote:
> > >
> > > If you are long in a May grain contract, when is the last possible day you
> > > can stay in? Is it FND, or is it possible to stay in longer (without
> > > accepting delivery)?
> > >
> > > Don S...
> > All commodity contracts except currencies are seller's option contracts.
> > So sellers have the option of making delivery to buyer at any time
> > during the delivery period, but buyers cannot demand elivery from
> > sellers. This means longs can carry their position right up to the
> > expiration of the contract. (LT day)
>
> Doesn't this mean that *shorts* can carry their positions beyond FND,
> not longs? Longs would risk having to take delivery but shorts do not
> have to make delivery if they don't want to.
You are correct - Shorts in most future contracts can hang in past
FND if they so choose. Longs can get nailed if they try to stay in
past FND. I made that mistake once and got nicked $500 in special
charges by the clearing house. I did not do that again!
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