Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Trading the SPOOs with Patrick Slevin! -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (4884)	6/1/2000 10:10:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 7434

Nah, it's never adjusted like that. I know there are some systems that create a "continuous" contract by shrinking the Prem linearly but you would not look at gap closure that way. Easier, would be to look to Cash Gaps. The only trouble there, is that some systems give you the Open as identical to the prior Close. So it depends on the data feed whether or not you can see the gaps on Cash. But to answer your question, no. You would not consider a gap closing by adjusting for the premium decay.