CME Group is launching new, smaller-sized options contracts on Micro Gold futures. Micro Gold options are 1/10 the size of the standard sized Gold option, providing market participants an efficient and cost-effective method to gain exposure to the gold market via monthly or weekly options.

The Micro Gold options derive their value from the underlying liquidity in the Micro Gold futures contract. Like the Micro Gold futures, the size of the Micro Gold options are 10 troy ounces.

Micro Gold options have monthly and weekly listings allowing flexibility and greater precision for both long- and short-term risk management. The monthly options are listed for the nearest 20 months and expire on the fourth last business day of the month prior to the Micro Gold futures contract month. Weekly options are listed to expire on the nearest four Mondays, Wednesdays, and Fridays respectively.

Micro Gold options are physically settled, and option premiums are quoted in ten cents per troy ounce tick increments, making a one tick move equivalent to one dollar.

For example, assume the premium for a Micro Gold option is fifty cents. The cost of the option would be five dollars, or fifty cents per troy ounce times 10 troy ounces.

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

Micro Gold options based on Micro Gold futures contracts allow participants a cost-effective and precise way to manage risk while diversifying their portfolio.