Key Takeaways with Craig

Due to travel schedules, we’re going to use the Key Takeaways section as to highlight two of CME’s popular options products today; options on E-mini and Micro E-mini S&P 500 (ES and MES). 

These options products allow traders to gain precise exposure to the benchmark S&P 500 Index with the same benefits of nearly around the clock trading and capital efficiencies that futures offer.  Some characteristics of these options include:

  • Daily, Weekly, Monthly and Quarterly expirations allowing users precision in determining the exposure they desire.
  • With the exception of the four Quarterly expirations, options on ES and MES are European-style, meaning they cannot be exercised early.
  • Like most CME futures and options products, they are available for trading from Sunday evening through Friday at 4:00 PM Central time, except for a daily, one hour window between 4:00 and 5:00 PM Chicago time. 
  •  SPAN margining ensures the same capital efficiencies as CME Group futures enjoy. 

E-mini and Micro E-mini S&P 500 options have many of the same characteristics but, because the Micro E-mini Options are based on futures 1/10 the size of the E-mini, the options are also 1/10 the size. 

For example, assume, hypothetically, that on Thursday, August 17th, with the underlying E-mini S&P 500 future trading near a price of 4,407, that the following was true:

  • The E-mini and Micro E-mini S&P 500 4,430 Call expiring on Monday, August 21, could be bought for 13.25 points
  • The E-mini and Micro E-mini S&P 500 4,445 Call expiring Monday, August 21, could be sold for 8 points.

Then, again hypothetically, a trader could buy the 4,430/4,445 Call Spread for 5.25 points.  In Dollar terms, the trader would pay:

  • $26.25 for the Micro E-mini S&P 500 Call Spread
  • $262.50 for the E-mini S&P 500 Call Spread

We’ve included an excerpt from a tool that we believe can be very valuable to CME Group options customers called the Contract Directory and Calendar below.  This tool shows, in calendar form, all of the different days on which an option in a particular product has an expiry.  On the right side, clicking on a given expiry (the Friday, Sep 1st in this example) will give the user much of the information about the option and the future on which it is based that they might need.  The live version of the tool can be found here.

Today's Future Price Action

Traders Resources

The information in the market commentaries have been obtained from sources believed to be reliable, but we do not guarantee its accuracy and expressly disclaim all liability. Neither the information nor any opinions expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. The information on this site compiled by CME Group is for general purposes only. All information and data herein is provided as-is. Additionally, all examples on this site are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. CME Group assumes no responsibility for any errors or omissions. CME Group, its affiliates and any third party information and content providers expressly disclaim all liability with respect to the information and data contained herein including without limitation, any liability with respect to the accuracy or completeness of any data. You use the data herein solely at your own risk. All data and information provided herein is not intended for trading purposes or for trading advice. All matters pertaining to rules and specifications herein are made subject to and superseded by official CME, CBOT, NYMEX and COMEX rules. Current rules should be consulted in all cases concerning contract specifications.

Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. Due to the leveraged nature of futures trading and swaps trading, it is possible to lose more than the amount deposited in a position. Therefore, traders should not deposit more funds than they can afford to lose without negatively affecting their lifestyles. A trader cannot expect to profit on each trade, and should only devote a small amount of their available funds to each trade. All references to options refer to options on futures.

Past performance is not necessarily indicative of future performance.

CME Group, the Globe Logo, Chicago Mercantile Exchange, Globex and CME are trademarks of Chicago Mercantile Exchange Inc. CBOT is the trademark of the Board of Trade of the City of Chicago, Inc. NYMEX is the trademark of the New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other marks are the property of their respective owners. Each of Chicago Mercantile Exchange Inc. (ARBN 103 432 391), The Board of Trade of the City of Chicago Inc (ARBN 110 594 459), the New York Mercantile Exchange Inc (ARBN 113 929 436) and Commodity Exchange, Inc. (ARBN 622 016 193) is a registered foreign company in Australia and holds an Australian market licence.

This site does not constitute a prospectus, product disclosure statement or legal advice, nor is it a recommendation to buy, sell or retain any specific investment or to utilise or refrain from utilising any particular service. Readers should consult their legal advisors for legal advice in connection with the matters covered on this site.

CME Group is the world’s leading 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.

© 2024 CME Group Inc. All rights reserved.