ajtj99's Market Pulse

[jdaasoc]

http://www.cmegroup.com/trading/equity-index/us-index/e-mini-sandp500.html

Mar 2009 687.75
Jun 2009 684.75
Sep 2009 682.5


Contango is defined as far delivery months is higher then nearer month. Opposite of contango is inverted market or backwardation.

Normally this is seen in food commodities where there is some supply disruption like weather but in this case best way of explaining this is that one needs a discount in order to accept equities at a future date assuming more market losses to come.


http://en.mimi.hu/stockmarket/inverted_market.html


Also known as an Inverted Market. The opposite of Contango. [NYMEX] bad debt reserve A reserve account maintained by thrift institutions and used to offset losses from foreclosed or uncollectable loans.

Inverted market premium payback period Also called break-even time, the time it takes to recover the premium per share of a convertible security.