141: Ultimate Guide To Contango And Backwardation Option Pricing

Episode 141 of the The Option Alpha Podcast podcast, hosted by Kirk Du Plessis, titled "141: Ultimate Guide To Contango And Backwardation Option Pricing" was published on August 29, 2018 and runs 27 minutes.

August 29, 2018 ·27m · The Option Alpha Podcast

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Summary

Show notes: http://optionalpha.com/show141 In the futures trading world, there are two words that sound cool to say but also might be very confusing for new traders; contango and backwardation. Yet, both of these future pricing concepts are very easy to understand once you know the relationship between three key items. In today's podcast, I want to slowly walk through the concept of contango and backwardation while offering a couple different examples to show you how it works in real life and...

Episode Description

Show notes: http://optionalpha.com/show141

In the futures trading world, there are two words that sound cool to say but also might be very confusing for new traders; contango and backwardation. Yet, both of these future pricing concepts are very easy to understand once you know the relationship between three key items. In today's podcast, I want to slowly walk through the concept of contango and backwardation while offering a couple different examples to show you how it works in real life and how we might be able to use the awareness of futures pricing as part of an options strategy in our portfolio.

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