1. What is the contract symbol for the Aluminum Option contract?

The contract symbol is AX (The benchmark Aluminum Futures contract is ALI).

2. Why is CME Group launching this product?

The introduction of the Aluminum Option contract expands the offering of the Aluminum product suite at CME Group and will provide the aluminum industry with an alternative to managing price risk. 

3. What are the contract specifications?

Contract Title Aluminum Option
Commodity Code AX
Rulebook Chapter 123
Underlying Futures Contract/Commodity Code Aluminum Futures / ALI
Trading Unit An Aluminum put or call option contract traded on the Exchange represents an option to assume a short or long position in the underlying futures contract traded on the Exchange.
Contract Size 25 metric tons/MT
Price Quotation U.S. dollars and cents metric ton
Minimum Price Fluctuation $0.25 per metric ton
Value per Tick $6.25
Option Exercise Style American
Listing Schedule Monthly contracts listed for 12 consecutive months
Initial Listed Contract Month Jul-22
Strike Price Listing Schedule Minimum 20 strikes at $25.00 per metric ton strike increment above and below the at-the-money strike plus dynamic strikes at $25.00 per metric ton strike increment above and below the highest and lowest prelisted strikes for the nearest 12 months.
Block Trade Minimum Threshold 5 contracts - subject to a 15-minute reporting window
Termination of Trading Trading terminates on the fourth last business day of the month prior to the contract month.
CME Globex Match Algorithm K-Split FIFO and Pro Rata
Trading and Clearing Hours CME Globex Pre-open: Sunday 4:00 p.m. - 5:00 p.m. Central Time/CT

Monday - Thursday 4:45 p.m. - 5:00 p.m. CT

CME Globex Open: Sunday 5:00 p.m. - Friday 4:00 p.m. CT with a daily maintenance period from 4:00 p.m. - 5:00 p.m. CT

4. When does trading terminate for Aluminum Option?

Trading terminates on the 4th last business day of the month prior to the contract month.

5. Is the Aluminum Option contract block eligible?

Yes.  The Aluminum Option contract is available for Block Trading and clearing via CME Clearport.  Block minimum thresholds can be found here Block Minimum Thresholds.

6. Into which futures contract do the Aluminum Option contract month exercise?

The Aluminum Option contract months exercise into the Aluminum Futures contract based on the schedule indicated in the following table:

Option contract month Exercise into underlying futures
Jan Mar
Feb Apr
Mar May
Apr Jun
May Jul
Jun Aug
Jul Sep
Aug Oct
Sep Nov
Oct Dec
Nov Jan
Dec Feb

7. Where can I trade the Aluminum Option contract?

Trading takes place on COMEX via CME Globex and block trading and submission for clearing take place through CME Clearport.

8. What are the trading hours on CME Globex and submission hours on Clearport?

Trading and clearing hours CME Globex: Sunday - Friday 5:00 p.m. Central Time/CT with a daily maintenance period from 4:00 p.m. - 5:00 p.m. CT

CME Globex Pre-Open: Sunday 4:00 p.m. - 5:00 p.m. CT. Monday - Thursday 4:45 p.m. - 5:00 p.m. CT

CME ClearPort: Sunday - Friday 5:00 p.m. - 4:00 p.m. CT with no reporting Monday - Thursday from 4:00 p.m. - 5:00 p.m. CT

* Subject to regulatory review

All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.

CME Group is the world’s leading derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

© 2024 CME Group Inc. All rights reserved.