Essentially rollover% is an indication of how much % of positions is getting rolled over to the next month ( be it long or short) .. and a higher rollover% indicates that the base direction for the next expiry action is set strongly by the bulls/bears prior to its beginning itself.
And whether the price trend reversal will be up or down can be seen clearly by a positive/negative or a change in the rollover cost which essentially in the price of next month future – current month future expressed as a %percentage premium/discount
So wondering how the rollover% and especially the rollover cost works out during the expiry / rollover week and what it gives a hint of ?
Well, what better way to showcase it in various scenarios than through a single ‘selfie’ to understand pic –>
the mystery behind rollover costs
the above pic is is for a month trend.. to see expiry day trend you can choose daterange as ‘1d’, so that you can see if there are any last day rollcost changes/reversals happening in long/short buildups , indicating where the buy/sell pressure is taking place.
to see what how you could have made money on the last trading day of the expiry see this example–>
rollcost on the expiry day itself!
To view this live in one-single click you can directly goto our directly created ‘Rollcost’viewtemplate in the ‘Trends’module –> https://www.myfno.com/#trends/ALL/rollcost
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