CME Group is launching a new smaller sized option contracts on its global Henry Hub Natural gas benchmark. Micro Henry Hub Natural Gas options will be 1/10 the size of the standard sized Henry Hub Natural Gas option, providing market participants an efficient and cost-effective method to gain exposure to the Henry Hub Natural Gas market.

Micro Henry Hub Natural Gas options will derive their value from the underlying liquidity in the Micro Henry Hub Natural Gas futures contract. Like the Micro Henry Hub Natural Gas futures, the size of the options will be one thousand MMBTus.

Micro Henry Hub Natural Gas options will have monthly and weekly listings allowing flexibility and greater precision for both short-and long-term risk management. The monthly options will be listed for the nearest 24 months and expire two days before the corresponding Micro Henry Hub Natural Gas futures contract. Weekly options will be listed to expire on the nearest two Fridays. 

Micro Henry Hub Natural Gas options will be financially settled, and option premiums will be quoted in one-tenth of one cent per MMBTu increments, making a one tick move equivalent to one dollar. 

For example, assume the premium for a Micro Henry Hub Natural Gas option is 5 cents. The cost of the option would be 50 dollars or 5 cents per MMBTu times one thousand MMBTus.

Trading of Micro Henry Hub Natural Gas options will be available on CME Globex, Sunday through Friday, nearly 24 hours a day.

Micro Henry Hub Natural Gas options join the Micro product suite, providing additional trading opportunities in the most liquid commodities in the world.