Stacked synthetic storage strategy
Is a type of synthetic storage strategy that uses “stacks” of futures for the amount of oil that needs to be stored.
For example: If a company needed to store oil for 3 months (10 bbls, 8 bbls, 7bbls, and 5 bbls for the months.) The company can buy a stack of of long futures contracts on the derivatives market. The stack would be smaller for the other months since the company needs to store less oil.