Short-Dated New Crop Options
Control the length of time and premium you pay for options based on new crop futures, giving you a more flexible way to manage risk than standard options.
Features and benefits
Lowered premiums
Premiums will typically be lower than the standard new crop options because of reduced time value.
More flexible risk management
Trade high-impact event on new crop contracts or engage in arbitrage with calendar spread options, standard, serial and weekly Agricultural options.
Manage margin costs
When purchasing Short-dated New Crop options you know exactly what margin costs will be. Help control cash flow throughout the season with the use of SDNC options.
How they work
Because of their lower time value, SDNC options allow market participants to manage risk or gain exposure in the new crop futures contracts at a relatively lower cost. This enhances hedging flexibility and offers an array of trading opportunities for those seeking cost-effective ways to take positions around key economic events and targeted times in the growing season.
| HEDGING WITH A STANDARD NOVEMBER PUT OPTION |
HEDGING WITH A SHORT DATED NEW CROP (SDNC) OPTION |
|---|---|
| Standard Nov put 1400 Strike Premium: .49 cents Days to expiration: 145 |
Standard Nov option 1400 Strike Premium: .34 cents Days to expiration: 82 |
Product Information
| Product quote | |
|---|---|
| Contract Unit |
1 futures contract for 5,000 bushels
|
| Minimum Price Fluctuation |
1/8 of one cent per bushel (0.00125) = $6.25
|
| Trading Hours |
CME Globex:
Sunday – Friday from 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday from 8:30 a.m. – 1:20 p.m. CT CME ClearPort:
Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
|
| Product Code |
CME Globex: OCD
CME ClearPort: CDF
Clearing: CDF
|
| Listed Contracts |
Monthly cotracts listed for 24 months. Add 12 new contract months (Oct-Sep) after termination of trading in the September contract of the current year.
|
| Termination of Trading |
Trading terminates on the Friday before 2nd last business day of the month prior to the contract month.
|
| Position Limits | |
| Exchange Rulebook | |
| Block Minimum | |
| Vendor Codes | |
| Strike Prices Strike Price Interval | |
| Settlement Method |
Deliverable
|
| Underlying |
Corn Futures
|
| Product Quote | |
|---|---|
| Contract Unit |
1 futures contract for 5,000 bushels
|
| Minimum Price Fluctuation |
0.00125 per bushel = $6.25
|
| Price Quotation |
U.S. dollars and cents per bushel
|
| Trading Hours |
CME Globex:
Sunday – Friday from 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday from 8:30 a.m. – 1:20 p.m. CT CME ClearPort:
Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
|
| Product Code |
CME Globex: OSD
CME ClearPort: SDF
Clearing: SDF
|
| Listed Contracts |
Monthly cotracts listed for 24 months. Add 12 new contract months (Oct-Sep) following the ternination of trading in the September contract of the current year.
|
| Termination of Trading |
Trading terminates on Friday before the 2nd last business day of the month prior to the contract month, if this is not a business day, trading terminates on the prior business day.
|
| Position Limits | |
| Exchange Rulebook | |
| Block Minimum | |
| Vendor Codes | |
| Strike Prices Strike Price Interval | |
| Settlement Method |
Deliverable
|
| Underlying |
Soybean Futures
|
| Contract Unit |
1 futures contract for 5,000 bushels
|
|---|---|
| Minimum Price Fluctuation |
1/8 of one cent (0.00125) per bushel = $6.25
|
| Trading Hours |
CME Globex:
Sunday – Friday from 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday from 8:30 a.m. – 1:20 p.m. CT CME ClearPort:
Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
|
| Product Code |
CME Globex: OWD
CME ClearPort: WDF
Clearing: WDF
|
| Listed Contracts |
6 monthly contracts listed in the Dec, Mar, May cycle. List a new set of contract months (Dec, Mar, May) after the termination of trading in the September contract of the current year.
Underlying Rule: Dec, Mar and May exercise into July futures. |
| Termination of Trading |
Trading terminates on the last Friday which precedes by at least two business days the last business day of the month prior to the contract month.
|
| Position Limits | |
| Exchange Rulebook | |
| Block Minimum | |
| Vendor Codes | |
| Strike Prices Strike Price Interval | |
| Settlement Method |
Deliverable
|
| Underlying |
Wheat Futures
|
| Product quote | |
|---|---|
| Contract Unit |
1 futures contract for 5,000 bushels
|
| Minimum Price Fluctuation |
1/8 of one cent (0.00125) per bushel = $6.25
|
| Trading Hours |
CME Globex:
Sunday – Friday from 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday from 8:30 a.m. – 1:20 p.m. CT CME ClearPort:
Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
|
| Product Code |
CME Globex: KWE
CME ClearPort: KWO
Clearing: KWO
|
| Listed Contracts |
6 monthly contracts listed in the Dec, Mar, May cycle. List a new set of contract months after the termination of trading in the September standard option.
Underlying Rule: Dec, Mar and May exercise into the next July futures. |
| Termination of Trading |
Trading terminates on the last Friday which precedes by at least two business days the last business day of the month prior to the contract month. Trading in expiring options ceases at the close of the regular CME Globex trading session for the corresponding futures contract.
|
| Position Limits | |
| Exchange Rulebook | |
| Block Minimum | |
| Price Limit or Circuit | |
| Vendor Codes | |
| Strike Prices Strike Price Interval | |
| Settlement Method |
Deliverable
|
| Underlying |
KC HRW Wheat Futures
|
| Contract Unit |
1 futures contract for 100 short tons
|
|---|---|
| Minimum Price Fluctuation |
0.05 cents per short ton = $5.00
|
| Price Quotation |
U.S. dollars and cents per short ton
|
| Trading Hours |
CME Globex:
Sunday – Friday from 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday from 8:30 a.m. – 1:20 p.m. CT CME ClearPort:
Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
|
| Product Code |
CME Globex: OMD
CME ClearPort: ODF
Clearing: ODF
|
| Listed Contracts |
Monthly contracts in the Jan, Mar, May, Jul, Sep, Oct cycle. List new monthly contracts after the termination of trading in the October contract of the current year.
|
| Termination of Trading |
Trading terminates on the last Friday which precedes by at least two business days the last business day of the month prior to the contract month.
|
| Position Limits | |
| Exchange Rulebook | |
| Block Minimum | |
| Strike Prices Strike Price Interval | |
| Settlement Method |
Deliverable
|
| Underlying |
Soybean Meal Futures
|
| Contract Unit |
1 futures contract for 60,000 pounds
|
|---|---|
| Minimum Price Fluctuation |
5/1000 of a cent (0.00005) per pound = $3.00
|
| Trading Hours |
CME Globex:
Sunday – Friday from 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday from 8:30 a.m. – 1:20 p.m. CT CME ClearPort:
Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
|
| Product Code |
CME Globex: OLD
CME ClearPort: LDF
Clearing: LDF
|
| Listed Contracts |
Monthly contracts listed in the Jan, Mar, May, Jul, Sep, Oct cycle. List a new set of contract months after the termination of trading in the October contact of the current year.
Underlying Rule: All months exercise into the December futures of the current year. |
| Termination of Trading |
Trading terminates on the last Friday which precedes by at least two business days the last business day of the month prior to the contract month.
|
| Position Limits | |
| Exchange Rulebook | |
| Block Minimum | |
| Strike Prices Strike Price Interval | |
| Settlement Method |
Deliverable
|
| Underlying |
Soybean Oil Futures
|
ARTICLE
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