Get to Know Options on Micro E-mini Futures
Given the strong liquidity and success of Micro E-mini futures, market participants frequently search for right-sized tools to manage risk and execute precise option strategies. In response to this market demand, CME Group offers Micro E-mini S&P 500 and Nasdaq-100 options. These contracts deliver smaller notional values and precision risk management to both individual investors and institutional traders.
Below is a detailed breakdown of how these contracts operate, their specifications and their settlement mechanics.
What are Micro E-mini S&P 500 and Nasdaq-100 options?
Micro E-mini S&P 500 and Nasdaq-100 options are smaller, financially settled options contracts that derive their value from the liquid underlying Micro E-mini futures contracts. They are exactly 1/10 the size of classic E-mini options, providing an accessible, highly precise avenue for index exposure.
How are these options settled at expiration?
Unlike traditional options on futures, these contracts are European-style and financially settled. This structural design provides two major advantages for market participants:
- Zero early assignment risk: Because they are European-style, positions cannot be exercised before expiration, eliminating unexpected early assignments.
- No physical delivery hurdles: Financial settlement means you avoid the operational burden and risk of managing or inheriting an expiring physical futures position in your account.
What are the contract multipliers?
The contract multiplier determines the dollar value of a one-point move. These contracts are precisely downsized for cost efficiency:
- Micro E-mini S&P 500 options multiplier: $5 per index point (1/10 of the standard E-mini S&P 500 $50 multiplier)
- Micro E-mini Nasdaq-100 options multiplier: $2 per index point
What are the minimum tick increments and premium costs?
An option's premium (cost) is influenced by variables such as underlying futures prices, market volatility, interest rates and time to maturity. The minimum price fluctuation, or tick increment, changes depending on whether the option premium is priced above or below 5.00 index points.
| Product | Option premium level | Minimum tick increment | Dollar value per tick |
| Micro E-mini S&P 500 options | Above 5.00 points | 0.25 index points | $1.25 |
| Micro E-mini S&P 500 options | 5.00 points or below | 0.05 index points | $0.25 |
| Micro E-mini Nasdaq-100 options | Above 5.00 points | 0.25 index points | $0.50 |
| Micro E-mini Nasdaq-100 options | 5.00 points or below | 0.05 index points | $0.10 |
What is the expiration schedule for these options?
To provide maximum flexibility around major economic events, corporate earnings and data releases, these contracts feature short-dated expiries spanning Monday through Friday.
What are the trading hours and clearing mechanisms?
- Trading platform and hours: Available to trade nearly 24 hours a day on the CME Globex electronic platform, starting Sunday afternoon through Friday afternoon.
- Capital efficiency: Market participants can benefit from potential margin offsets when holding correlated CME Group Equity Index products.
- Security: All trades are centrally cleared and secured through CME Clearing.
Key takeaways
Micro E-mini S&P 500 and Nasdaq-100 options give market participants an efficient, flexible tool for risk management. With daily expiries, a $5 or $2 multiplier and the complete elimination of early assignment risk via financial settlement, they offer an ideal environment for precise Equity Index trading.