Sharekhan Blog

MCX launches 2 new Commodity Options Contracts in a push towards inclusivity and pocket-friendliness

Apr 29, 2024

In a move that pocket-conscious traders will welcome, Multi Commodity Exchange of India (MCX) has launched two new Options Contracts for trading, effective April 23, 2024:

Crude Oil Mini Options [with Crude Oil Mini (10 barrels) Futures as underlying]
Natural Gas Mini Options [with Natural Gas Mini (250 MMBtu) Futures as underlying]

Tell me more!

Let’s check out the specifications one by one:

Crude Oil Mini

Crude Oil Mini Options contracts will be available for trading as below:

Contract Launch Date	Contract Expiry Date	Contract Expiry Month
April 23, 2024	June 14, 2024	June 2024
April 23, 2024	July 17, 2024	July 2024

Contract Specifications for MCX Crude Oil Mini Options with Crude Oil Mini (10 barrels) Futures as underlying:

Symbol	CRUDEOILM
Underlying	Underlying shall be Crude Oil Mini Futures contract traded on MCX
Description	Options on Crude Oil Mini Futures
Option Type	European Call & Put Options
Contract Listing	Contracts will be available as per the Contract Launch Calendar
Contract Start Day	The next business day immediately after the expiry of the near month futures contracts
Expiry Day (Last Trading Day)	Two business days prior to the Expiry Day of the underlying futures contract
Trading
Trading Unit	One MCX Crude Oil Mini futures contract (10 bbl)
Strikes	25 In-the-money, 25 Out-of-the-money and 1 Near-the money (51 CE and 51 PE). The Exchange, at its discretion, may introduce additional strikes, if required.
Strike Price	Intervals of Rs. 50
Base price	Base price shall be theoretical price on Black 76 option pricing model on the first day of the contract. On all other days, it shall be previous day’s Daily Settlement Price of the contract.
Tick Size (Minimum Price Movement)	Rs. 0.05

For further information pertaining to this Contract’s margins, premium, position limits, and settlement, and to browse through its launch calendar for the year 2024, click MCX/TRD/241/2024.

Natural Gas Mini

Natural Gas Mini Options contracts will be available for trading as below:

Contract Launch Date	Contract Expiry Date	Contract Expiry Month
April 23, 2024	May 24, 2024	May 2024
April 23, 2024	June 21, 2024	June 2024

Contract Specifications for MCX Natural Gas Mini Options with Natural Gas Mini (250 MMBtu) barrels) Futures as underlying:

Symbol	NATGASMINI
Underlying	Underlying shall be Natural Gas Mini Futures contract traded on MCX
Description	Options on Natural Gas Mini Futures
Option Type	European Call & Put Options
Contract Listing	Contracts will be available as per the Contract Launch Calendar
Contract Start Day	The next business day immediately after the expiry of the near month futures contracts
Expiry Day (Last Trading Day)	Two business days prior to the Expiry Day of the underlying futures contract
Trading
Trading Unit	One MCX Natural Gas Mini Futures Contract (250 MMBtu)
Strikes	15 In-the-money, 15 Out-of-the money and 1 Near-the-money (31CE and 31 PE). The Exchange, at its discretion, may introduce additional strikes, if required.
Strike Price	Intervals of Rs. 5
Base price	Base price shall be theoretical price on Black 76 option pricing model on the first day of the contract. On all other days, it shall be previous day’s Daily Settlement Price of the contract.
Tick Size (Minimum Price Movement)	Rs. 0.05

For further information pertaining to this Contract’s margins, premium, position limits, and settlement, and to browse through its launch calendar for the year 2024, click MCX/TRD/242/2024.