- When will the new WTI Crude Oil Tuesday and Thursday Weekly options products be listed for trading?
- Why is CME Group choosing to launch these products?
- How are these products different from other listed WTI Crude Oil Weekly options?
- What are the contract specifications?
- How many contracts are listed at a given time?
- What are the trading hours on CME Globex and submission hours on ClearPort?
- Are these options eligible for block trading?
- What are the fees for the WTI Crude Oil Tuesday and Thursday Weekly options contract?
- What are the exercise procedures for these contracts?
1. When will the new WTI Crude Oil Tuesday and Thursday Weekly options products be listed for trading?
Starting July 22, 2024, WTI Crude Oil Tuesday and Thursday Weekly options are available for trading on CME Globex and for submission of clearing via CME ClearPort.
2. Why is CME Group choosing to launch these products?
WTI Crude Oil Weekly options are one of the fastest growing Energy products at CME Group. Last year, CME Group launched WTI Crude Oil options with expirations on Monday and Wednesday, which were one of the most successful commodity options launches in CME Group history.
Based on the demand from customers for options expirations on the remaining two days of the week, CME Group is introducing WTI Crude Oil Weekly options with expirations on Tuesday and Thursday to provide additional tools for market participants to express their view on the Crude Oil market and hedge short-term risk related to market moving crude oil events.
3. How are these products different from other listed WTI Crude Oil Weekly options?
WTI Crude Oil Tuesday and Thursday Weekly options have the same contract specifications and exercise procedures as the current suite of WTI Crude Oil Weekly options but expire on Tuesdays and Thursdays.
4. What are the contract specifications?
| WTI CRUDE OIL WEEKLY OPTIONS | |||||
|---|---|---|---|---|---|
| MONDAY | NEW TUESDAY | WEDNESDAY | NEW THURSDAY | FRIDAY | |
| CONTRACT SIZE | 1,000 barrels | 1,000 barrels | 1,000 barrels | 1,000 barrels | 1,000 barrels |
| MINIMUM STRIKE INCREMENT | $0.25 per barrel | $0.25 per barrel | $0.25 per barrel | $0.25 per barrel | $0.25 per barrel |
| MINIMUM TICK INCREMENT | $0.01 per barrel | $0.01 per barrel | $0.01 per barrel | $0.01 per barrel | $0.01 per barrel |
| DOLLAR VALUE OF ONE TICK | $10 per contract | $10 per contract | $10 per contract | $10 per contract | $10 per contract |
| PRODUCT CODE | ML1-ML5 | NL1-NL5 | WL1-WL5 | XL1-XL5 | LO1 - LO5 |
| SETTLEMENT | Physical | Physical | Physical | Physical | Physical |
| TRADING HOURS | CME Globex: Sunday – Friday: 5:00 p.m. to 4:00 p.m. Central time (CT) Monday – Friday: 60-minute daily trading halt beginning at 4:00 p.m. CT | ||||
| LISTING EXCHANGE | NYMEX | ||||
| EXPIRATION RULES | Auto exercise and no contrary instructions | ||||
Full contract specs are available here.
5. How many contracts are listed at a given time?
The next four weekly options are listed at any one time. No Weekly option contract will be listed on Exchange holidays. Similar to the WTI Crude Oil Weekly options, if the weekly Tuesday or Thursday contract expires on the same day as the monthly WTI Crude Oil (LO) options contract, the weekly option will exercise into the second listed underlying futures contract month.
6. What are the trading hours on Globex and submission hours on ClearPort?
Sunday – Friday 6:00 p.m. to 5:00 p.m. Eastern time (ET) with a trading halt from 5:00 p.m. to 6:00 p.m. ET. Please refer to this link.
7. Are these options eligible for block trading?
Yes, WTI Crude Oil Tuesday and Thursday Weekly options are eligible for block trading. The minimum block threshold is 10 contracts. All block trading is subject to Rule 526.
8. What are the fees for the WTI Crude Oil Tuesday and Thursday Weekly options contracts?
WTI Crude Oil Tuesday and Thursday Weekly options are part of the NYMEX fee schedule.
9. What are the exercise procedures for these contracts?
WTI Crude Oil Tuesday and Thursday Weekly options are physically settled into WTI Crude Oil (CL) futures and can be exercised on any business day until expiration.
On the last day of trading, in-the-money options are automatically exercised and out-of-the-money options will be abandoned. Contrary instructions are not allowed.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
