CME Group » Short Term Options: Interest Rates,
Short Term Options: Interest Rates, Equity, Agricultural, FX, Energy and Metals
Tue Nov 01 12:01:00 CDT 2011 CT
Related Keywords: Interest Rates
 
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Manage Short-Term Event Risk Across All Major Asset Classes

CME Group now offers short-dated options across all asset classes. Short term options, weekly options and daily options all provide Interest Rates, Equity, Agricultural,
FX, Energy and Metals traders with more opportunities around high impact
economic events, and increased precision and flexibility in managing
existing option positions.

Free real-time quotes

Key Benefits

  • Flexibility to manage volatility and gamma
  • Precision timing to target specific market movements
  • Shorter expirations to gain market exposure at a lower premium
  • Available across multiple asset classes
 

 

Weekly Interest Rate Options

Expanding the range of standardized, short-dated options, Weekly Treasury Options complement the standard and the flexible options on U.S. Treasury futures, and provide users with increased flexibility in managing existing option positions. They also provide new opportunities to trade high impact economic events, such as U.S. Treasury auctions and economic reports.

Weekly Mid-Curve options allow risk managers to trade Eurodollar options with high gamma on one of the most actively traded Eurodollar futures expirations, the fifth quarterly or first "Red" contract. There are five consecutive weekly options available for trading.

Features:

  • Listed 3 weeks at a time
  • Expire on the last business day of each week (typically Friday), except day of standard expiration
  • Exercise into the next quarterly futures expiry
  • Same strike price intervals and minimum tick sizes as the serial and quarterly options
  • American Expiration, automatic exercise in in-the-money (ITM)
  • Trade via open outcry and electronically on CME Globex

Products Available:

  • 2-Year
  • 5-Year
  • 10-Year
  • T-Bond
  • Ultra
  • Eurodollar 1-Yr Red Mid Curves

Resources:

Events

  • Treasury Auctions
  • FOMC Meetings
  • Nonfarm Payroll Employment Report
  • Inflationary Numbers (CPI, PPI)

Weekly Equity Options

Complementary to existing quarterly/serial options, weekly equity options offer flexibility and precision in managing shorter duration large-cap U.S. equity market exposure, and create more trading opportunities around economic releases and market events.

Features:

  • Listed 2 weeks at a time
  • Expire on the last business day of each week (typically Friday), except day of standard expiration (S&P 500 options also offer month-end settlement options)
  • 50 strikes up and down from at-the-money
  • European Expiration, automatic exercise in in-the-money (ITM)
  • Trade via open outcry and electronically on CME Globex

Products Available:

  • E-mini S&P 500
  • Standard S&P 500
  • E-mini NASDAQ-100
  • NASDAQ-100

Resources:

Events

  • FOMC Meetings
  • Nonfarm Payroll Employment Report
  • GDP announcement
  • Producer Price Index (PPI)

Weekly Agricultural Options

Complementing the standard and the serial options, Weekly Grain Options (WGOs) offer flexibility in managing existing option positions, and create new opportunities to trade high impact economic events, such as changing weather forecasts and USDA reports.

Features:

  • Listed 3 weeks at a time
  • Expire on the last business day of each week (typically Friday), except day of standard expiration
  • Same strike price intervals and minimum tick sizes as the serial and quarterly options
  • American Expiration, automatic exercise in in-the-money (ITM)
  • Trade via open outcry and electronically on CME Globex

Products Available:

  • Wheat
  • Corn
  • Live Cattle
  • Soybeans
  • Soybean Oil
  • Soybean Meal

Resources:

Events

  • USDA Reports
  • Changing Weather Forecasts

Weekly FX Options

Features:

  • Listed 4 weeks at a time
  • Expire on the last business day of each week (typically Friday)
  • Same strike price intervals and minimum tick sizes as the serial and quarterly options
  • American and European Expiration, automatic exercise in in-the-money (ITM)
  • Trade via open outcry and electronically on CME Globex

Products Available:

  • EUR/USD
  • GBP/USD
  • CAD/USD
  • AUD/USD
  • JPY/USD
  • CHF/USD

Resources:

Events

  • FOMC and foreign Central Bank meetings where rates are determined
  • Nonfarm Payroll Employment Report
  • Inflationary Numbers (CPI, PPI)
  • G10 economic meetings
  • Important elections or votes (i.e. Presidential elections)
  • Fast developing geopolitical events

Short-Term Energy Options

Regional crude oil and natural gas storage data, weather anomalies and other macroeconomic factors can have a dramatic impact on the energy markets. These new short-term crude oil and natural gas options contracts will enable market participants to better manage that kind of event risk.

Features:

  • Listed 5 business days at a time
  • Expire every business day (except day of standard expiration)
  • Same strike price intervals and minimum tick sizes as the serial and quarterly options
  • European Expiration, automatic exercise in in-the-money (ITM)
  • Trade via open outcry and electronically on CME Globex
  • Clearing through CME ClearPort

Products Available:

  • Crude Oil (WTI)
  • Natural Gas (Henry Hub)

Resources:

Events

  • Weekly storage numbers
  • World events/turmoil
  • Natural disasters
  • Weather events
  • Heating/cooling days

Short-Term Metals Options

Recent global macroeconomic events and volatility underscore the need for tools to enable market participants to manage their basis risk every day. Our innovative new short-term gold options contracts will provide customers with much greater flexibility to manage the risk associated with government economic data, world events and other market-moving factors, while enabling them to benefit from the lower cost associated with short-dated options.

Features:

  • Listed 5 business days at a time
  • Expire every business day (except day of standard expiration)
  • Same strike price intervals and minimum tick sizes as the serial and quarterly options
  • European Expiration, automatic exercise in in-the-money (ITM)
  • Trade via open outcry and electronically on CME Globex
  • Clearing through CME ClearPort

Products Available:

  • Gold

Resources:

Events

  • Treasury Auctions
  • FOMC Meetings
  • Nonfarm Payroll Employment Report
  • Inflationary Numbers (CPI, PPI)
  • World events/turmoil
  • Natural disasters
 

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