Hi all,
i have a long position on WTI May and wish to rollover to WTI June, however the price difference is too huge as of now. WTI may is about 19.90 and June WTI is about 26.40. my broker does not allow me to take delivery and i will have to close the may position and re long again the june contract. i do not wish to close my may WTI at 20.00 for eg and re long the june WTI at for eg 26.00 closer to expiry . i intend to long WTI for the medium term.
i have a few qns.
- closer to expiry will the spread narrow further?
- if there anyway to mitigate the spread using calendar spread?
- or perhaps there is another way to mitigate this?
thx in advance