Options on Bloomberg Commodity Index (BCOM) futures (AW) offer traders a way to manage risk and control exposure to commodity markets without the need to directly purchase physical commodities.

Asset managers and hedge funds who engage with options on BCOM futures via our platforms will enjoy several advantages when compared to other platforms or OTC contracts. These potential advantages include margin savings, capital efficiency and the ability to manage risk while being in a position to capitalize on market volatility.

The Bloomberg Commodity Index provides diversification to market participants by offering exposure to a broad range of commodities within a single position. This may potentially enhance the risk-return profile of an investment portfolio.

Options on BCOM futures offer traders an asymmetrical risk-reward profile, allowing them the opportunity to limit potential losses while maintaining upside. These options enable traders to capitalize on market volatility, offering opportunities to profit from price swings without owning the underlying asset.

Traders can also use options to construct collar strategies, which combine the purchase of a protective put and the sale of a covered call, effectively hedging their positions.

The listing cycle for the options on BCOM futures aligns to the futures contracts, or four of the nearest quarterly months and one additional December contract. Options on BCOM futures are listed in the European style and can be exercised only on the option’s expiration day.

Options on BCOM futures are available to trade from 8:15 a.m. – 1:30 p.m. Central time (CT) via CME Globex.

Options on BCOM futures are block trade-eligible at a minimum block quantity of 50 contracts. For those looking to execute block trades – including Basis Trade at Index Close (BTIC) block trades – explore our list of block liquidity providers.