Summary
TLDR: Futures term structure is typically upward sloping, but a large spread indicates speculative sentiment, says BloFin’s head of options trading.
Key Points
1. The futures term structure is typically upward sloping, with longer expiry contracts trading at a premium to shorter ones.
2. A large spread in the futures term structure can indicate speculative sentiment in the market.
3. Griffin Ardern, head of options trading and research at BloFin, emphasizes the importance of monitoring the futures term structure for insights into market sentiment.