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.
