Calendar Spread Options

Calendar Spread Options are options on the price differential between 2 contract months, rather than on the underlying asset itself. Therefore, they offer alternative hedging capabilities compared to standard options, and can provide a more precise hedge against adverse movements in price spreads in the grain and oilseed markets.

Calendar Spread Options are sensitive to the value and volatility of the spread itself, rather than the price of the underlying commodity. They are more efficient than combining options on 2 different months in an effort to replicate the spread, and provide a better risk management device for hedgers and market participants exposed to calendar spread risks.  

  • Chicago SRW Wheat Calendar Spread Options
  • Corn Calendar Spread Options
  • KC HRW Wheat Calendar Spread Options
  • Soybean Calendar Spread Options
  • Soybean Meal Calendar Spread Options
  • Soybean Oil Calendar Spread Options

 

Listing Cycles:

Corn Chicago SRW Wheat KC HRW Wheat Soybean Soybean Oil Soybean Meal
Consecutive* Consecutive* Consecutive* Consecutive* Consecutive* Consecutive*
Mar-July Mar-July Mar-July Jan-May Dec-July Dec-July
Mar-Dec Dec-July Dec-July Mar-July July-Dec July-Dec
July-Dec July-Dec July-Dec Mar-Nov Aug-Dec Aug-Dec
Dec-July July-July (1 year) July-July (1 year) May-Nov Sep-Dec Sep-Dec
Dec-Dec (1 year) Dec-Dec (1 year) Dec-Dec (1 year) July-Nov    
      Aug-Nov    
      Nov-Mar    
      Nov-July    
      July-July (1year)    
      Nov-Nov (1year)    
      Jan-Mar (different calendar years)    

* A consecutive spread is a spread between the two closest maturity months.

The consecutive futures calendar spreads and the longer dated spreads will be listed at all times. When the existing longer dated spreads expire the corresponding longer dated spreads for the following year will be listed.

Grain and Oilseed CSOs offer:

  • Customization
    Precise hedges geared to your exposure to temporal risk
  • Opportunities
    Protection against adverse price moves along with access to favorable moves
  • Choice of venue
    Trading floor or CME Globex electronic platform
  • Liquidity
    Dedicated and active market makers on the trading floor and on CME Globex
  • Security
    Centralized clearing and guaranteed counterparty credit