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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 683.47+0.6%Nov 28 4:00 PM EST

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To: HairBall who wrote (836)12/7/1998 11:37:00 PM
From: Patrick Slevin  Read Replies (1) of 99985
 
PREM is most often found in glossaries on Futures, such as this one

cme.com

The excess of one futures contract price over that of another, or over the cash market price.

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This reference should provide some idea about how changes in PREM may affect the way markets are sometimes moved.

cme.com

As the contract decays, much like an option, the PREM tends to reduce as time premium becomes less and less. PREM will shoot up to perhaps the 11 dollar level or so once again later this week as the March Contract becomes "front" and the December contract starts to unwind.
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