Get to Know Options on Micro E-mini Futures

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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:

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:

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?

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.

Test Your Knowledge

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True or false: If the Micro E-mini S&P 500 options contract option is priced at five, the minimum tick increment is 0.05 index points – equal to twenty-five cents.
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False