In this report
- Think long term: expansion of listing schedule for Gold, Silver and Copper options
- Expand your options: new Friday expirations for Platinum and Palladium Weekly options
- Hedging the red metal: Copper options soar on China’s recovery
- Safe haven shines: Gold options volume reflect record prices and volatility
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Think long term: expansion of listing schedule for Gold, Silver and Copper options
Starting February 10*, we will expand the listing schedule for Gold (OG), Silver (SO) and Copper (HXE) options. Under the new schedule, monthly option contracts will be available for up to 22 consecutive months, with additional long-dated expirations added in June and December for the nearest 72 months (for OG) and 60 months (for SO and HXE).
These changes provide market participants with greater flexibility and precision to manage long-term exposure to price fluctuations in Precious and Base Metals products. Additionally, we have recently enhanced our Copper Weekly options by reducing the strike increments from 0.05 to 0.01, effective January 13. This adjustment allows traders to achieve greater precision in their short-dated positions, enhancing their ability to manage risk effectively.
*Pending regulatory review
Expand your options: new Friday expirations for Platinum and Palladium Weekly options
To complement the existing Monday through Friday expiries for Gold, Silver and Copper Weekly options, we introduced Friday expirations for Platinum and Palladium Weekly options effective February 3. This latest enhancement to our existing options suite offers market participants expanded flexibility to manage short-term price risks in the PGM markets.
Friday continues to dominate as the most popular expiration day for Weekly options, reflecting its utility in managing end-of-week positioning and risk tied to market events. However, 2024 saw significant adoption in our Monday through Thursday expiries, highlighting the growing role of Weekly options in managing market dynamics throughout the week.
Hedging the red metal: Copper options soar on China’s recovery
Our Copper options saw strong trading momentum in January, with an average daily volume (ADV) of 8,769, a 26% YoY increase. Open Interest (OI) has also rebounded to 150K, driven by a 4% rally in copper prices since the start of this year, fueled by robust demand from China. Our Copper options continue to offer market participants the liquidity and flexibility needed to navigate both short-term volatility and long-term risk.
Safe haven shines: Gold options volume reflect record prices and volatility
Gold options trading surged in January, with an ADV of 103K, up 17% YoY, and OI rebounding to a high of over 1M lots. This activity coincided with gold prices hitting an all time high of $2,817.10 per ounce, largely driven by investor concerns over persistent inflation and uncertainty surrounding U.S. trade policy under the new administration. These dynamics reinforced gold’s role as a safe-haven asset. Market participants can manage market risk and access our Gold options, available in both monthly and Weekly options, every day of the trading week.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.