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Natural Gas Options (European) Contract Specs

Options
Contract Unit On expiration of a call option, the value will be the difference between the settlement price of the underlying Henry Hub Natural Gas Futures and the strike price multiplied by 10,000 MMBtu, or zero, whichever is greater. On exercise of a put option, the value will be the difference between the strike price and the settlement price of the underlying Henry Hub Natural Gas Futures multiplied by 10,000 MMBtu, or zero, whichever is greater.
Minimum Price Fluctuation CME Globex: $0.001 per MMBtu
CME ClearPort: $0.0001 per MMBtu
Price Quotation U.S. dollars and cents per mmBtu.
Trading Hours Sunday - Friday 6:00 p.m. - 5:00 p.m. (5:00 p.m. - 4:00 p.m. Chicago Time/CT) with a 60-minute break each day beginning at 5:00 p.m. (4:00 p.m. CT)
Product Code CME Globex: LNE
CME ClearPort: LN
Clearing: LN
Listed Contracts Monthly contracts listed for the current year and the next 12 calendar years. Monthly contracts for a new calendar year will be added following the termination of trading in the December contract of the current year..
Termination Of Trading Trading terminates on the business day immediately preceding the expiration of the underlying futures contract.
Position Limits NYMEX Position Limits
Exchange Rulebook NYMEX 560
Block Minimum Block Minimum Thresholds
Vendor Codes Quote Vendor Symbols Listing
Strike Price Listing Procedures Strike Price Listing Procedures Table
Exercise Style European
Settlement Method Financially Settled
Underlying Henry Hub Natural Gas Futures

About Natural Gas

Henry Hub Natural Gas (NG) Futures allow market participants significant hedging activity to manage risk in the highly volatile natural gas price, which is driven by weather-related demand. They also provide efficient transactions in and out of positions. Natural gas futures are:

  • The third-largest physical commodity futures contract in the world by volume
  • Widely used as a national benchmark price for natural gas, which continues to grow as a global and U.S. energy source
  • An independent, stand-alone commodity

Things to know about the contracts:

  • Natural gas futures prices are based on delivery at the Henry Hub in Louisiana.
  • Traded via open outcry, electronically on CME Globex and off-exchange for clearing only as an EFS, EFP or block trade through CME ClearPort.
  • Options types include American, calendar spread, European and daily.

Read more about Henry Hub Natural Gas (NG) Futures