Summary: For this segment of Closing the Gap Futures Edition, Tom, Pete, and Beef discuss the current state of Contango. The Aug-Sep spread looks volatile, but is this unusual? In comparison to previous years, 2017 is relatively stable. With a continued rally in Crude Oil, it is possible we might observe a flattening in the contango and a switch to backwardation. Pete, Beef and Bat present the ways we can trade this reversion. The first strategy is directly buying the /CLQ7 and selling the /CLU7 (Buying the calendar spread). The second is an indirect play longing Crude Oil through products such as USO, XOP, and OIH with strategies such as Short [Naked Puts](https://www.tastytrade.com/tt/learn/naked-options), Put [Ratio Spreads](https://www.tastytrade.com/tt/learn/ratio-spread) and [Jade Lizards](https://www.tastytrade.com/tt/learn/jade-lizard). ###CRUDE OIL Contract Specs<br> * Symbol: /CL <br> * Contract Size: 1000 BARRELS<br> * Delta: 1000<br> * Minimum Tick: $0.10<br> * Tick Value: $10.00<br> * Expiration: MONTHLY <br>
