Markets Home

Active trader

Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio.

Find a broker

Search our directory for a broker that fits your needs.

CREATE A CMEGROUP.COM ACCOUNT:

MORE FEATURES, MORE INSIGHTS

Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market.
Market Data Home

Real-time market data

Stream live futures and options market data directly from CME Group.

E-quotes application

Access real-time data, charts, analytics and news from anywhere at anytime.

CME DATAMINE:

THE SOURCE FOR HISTORICAL DATA

Explore historical market data straight from the source to help refine your trading strategies.
Services Home

Uncleared margin rules

Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements.

Calculate margin 

Evaluate your cleared margin requirements using our interactive margin calculator.
Education Home

Now live: ESG solutions

Manage the risk associated with renewable energies, environmental change and sustainable investments.

Create a CMEGroup.com Account: More features, more insights

Get quick access to premium educational content, including expert-led webinars, a real-time trading simulator, and more.
      Course Overview
      • Get to know options on Micro E-mini futures
      • Understanding listings and expirations
      • Micro E-mini Options Strategies
      Micro E-mini Options
      You completed this course.Get Completion Certificate
        • Also available in

        • 한국어
        • 简体中文
        • 繁體中文

      Micro E-mini Options Strategies

      Video not supported!

      Have you ever wanted to trade options, but were hesitant due to the larger contract sizes or costs involved? Or needed more granularity for the execution of multi-leg options strategies?

      Now you can do both. You can trade option strategies on the most recognized equity benchmarks in the world, with the more accessible Micro E-mini options contracts.

      To better understand this, let’s look at a traditional E-mini-based strategy where you could buy the E-mini S&P 500 3000, 3100 call spread for 46 index points.

      With a contract multiplier of $50 per index point, it would cost $2300 ‒ along with potential delivery of a regular-sized E-mini futures contract per call spread.

      Perhaps the size of this trade is too large for your strategy or portfolio allocation?

      With Micro E-mini S&P 500 options contracts, you can now enter that trade with a fraction of the exposure and less capital outlay.

      You could still buy the 3000, 3100 call spread for 46 index points but using Micro E-mini options, with their smaller $5 multiplier, the cost of that spread would be $230 – just 1/10 of the cost.

      You’re still able to express the same strategy with the same risk profile on the same underlying market, but with less capital and 1/10 of the exposure.

      Similar to the call spread example, Micro E-mini options can be used with any of the traditional options strategies that traders use on the larger contracts.

      This is just as true for single leg strategies, like a protective put.

      For example, if you had an existing long position of seven Micro E-mini Nasdaq-100 futures contracts – and wanted to use options to protect those seven futures - you would need 70% of one E-mini Nasdaq-100 option.

      Now with Micro E-mini options, precision hedging can be achieved. In this case, to have an exact protective put strategy, you can purchase exactly seven Micro E-mini Nasdaq-100 puts.

      We’ve looked at two examples showing the benefits that the flexibility, precision, and right-sized cost of Micro E-mini options can provide. Whatever your trading strategy is, there’s an option for you.


      Test your knowledge

      Related Courses
      /content/cmegroup/en/education/courses/micro-e-mini-options/micro-e-mini-options-strategies
      • {{ course.name }}
      Previous Lesson
      Next Lesson
      Course Overview
      Get Completion Certificate
      Previous Lesson Next Lesson
      • YouTube
      • Twitter
      • Facebook
      • LinkedIn
      • Instagram
      • Rss

      CME Group is the world's leading and most diverse 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.

      © 2021 CME Group Inc. All rights reserved.

      Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern