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Crude Oil Options Specs

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Options Contract Specifications
   
The crude oil contract specifications tell you how the crude oil options trade, not how to trade crude oil options. Before you consider opening a commodity options account, you should consult with a licensed commodities broker.

CRUDE OIL OPTIONS

Trading Unit  
One NYMEX Division light sweet crude oil futures contract.  
               
Price Quotation  
U.S. dollars and cents per barrel.  
                   
Trading Hours  (All times are New York time)  
Open outcry trading is conducted from 9:00 AM until 2:30 PM.  
            
Electronic trading is conducted from 6:00 PM until 5:15 PM via the CME Globex® trading platform, Sunday through Friday. There is a 45-minute break each day between 5:15PM (current trade date) and 6:00 PM (next trade date).  
                      
Trading Months  
Crude oil options are listed nine years forward using the following listing schedule: consecutive months are listed for the current year and the next five years; in addition, the June and December contract months are listed beyond the sixth year. Additional months will be added on an annual basis after the December contract expires, so that an additional June and December contract would be added nine years forward, and the consecutive months in the sixth calendar year will be filled in.  
                    
Minimum Price Fluctuation  
$0.01 (1¢) per barrel ($10.00 per contract).  
           
Maximum Daily Price Fluctuation  
No price limits.  
             
Last Trading Day  
Trading ends three business days before the underlying futures contract.  
               
Exercise of Options  
By a clearing member to the Exchange clearinghouse no later than 4:30 PM or 45 minutes after the underlying futures settlement price is posted, whichever is later, on any day up to and including the options expiration.  
         
Strike Prices  
Twenty strike prices in increments of $0.50 (50¢) per barrel above and below the at-the-money strike price, and the next 10 strike prices in increments of $2.50 above the highest and below the lowest existing strike prices for a total of at least 61 strike prices. The at-the-money strike price is nearest to the previous day's close of the underlying futures contract. Strike price boundaries are adjusted according to the futures price movements.  
               
Margin Requirements  
Margins are required for open short options positions. The margin requirement for an options purchaser will never exceed the premium.  
                
Trading Symbol  

LO

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Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

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