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Natural Gas Options Specs

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

NATURAL GAS OPTIONS

Trading Unit  
One NYMEX Division natural gas futures contract.  
           
Price Quotation  
U.S. dollars and cents per mmBtu.  
        
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  
Consecutive months for the balance of the current year plus five additional years  
        
Minimum Price Fluctuation  
$0.001 (0.1¢) per mmBtu ($10.00 per contract).  
                
Maximum Daily Price Fluctuation  
No price limits.  
              
Last Trading Day  
Trading ends on the business day immediately preceding the expiration of the underlying futures contract.  
            
Exercise of Options  
By a clearing member to the Exchange clearinghouse not 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 $0.05 (5¢) per mmBtu above and below the at-the-money strike price in all months, plus an additional 20 strike prices in increments of $0.05 (5¢) per mmBtu above the at-the-money price will be offered in the first three nearby months, and the next 10 strike prices in increments of $0.25 (25¢) per mmBtu above the highest and below the lowest existing strike prices in all months for a total of at least 81 strike prices in the first three nearby months and a total of at least 61 strike prices for four months and beyond. 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 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 paid.  
          
Trading Symbol
ON

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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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