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Deep liquidity and extensive choice drive a strong Q3 finish for options

Heading into the final quarter of 2023, options have continued their strong momentum from Q2. At the close of the quarter, YTD volume reached a record 929M total contracts traded with an ADV of 5M

There were also several records hit across asset classes:

  • Weekly options reached a record of 1.6 M ADV in Q3 2023, up 23% from last quarter and 40% YoY
  • Energy (13K), Equity (1.2M), and Rates (366K) all achieved record weekly options ADV in Q3
  • Agriculture and FX weekly options ADV grew 33% and 29% YoY respectively

This growth illustrates the deep liquidity in our markets. CME Group options provide an extensive range of products and expirations to manage risk across all asset classes.

Now Live: Monday Weekly Treasury options

Building on the success of Wednesday and Friday Weekly Treasury options, CME Group has launched Monday-expiring Weeklies beginning Oct. 30, offering greater precision to manage weekend gamma risk. Weekly options ADV has surged to 333K contracts YTD, accounting for a record 30% of total Treasury options volume.

Big in stature, smaller in size: Micro Gold options launched on Oct. 2

Built on the success of Micro Gold futures, Micro Gold options are 1/10 of the size of standard Gold options contract. They offer enhanced precision for trading around macro events, allowing you to capitalize on market-moving opportunities.

Monthly and weekly Micro Gold options are now available under the following codes:

  • Monthly Micro Gold options (OMG)
  • Micro Gold Weekly Monday option (1MG-5MG)
  • Micro Gold Weekly Wednesday option (1WG-5WG)
  • Micro Gold Weekly Friday option (1FG-5FG)

Fine-tune risk exposure in the agricultural sector by leveraging the versatility and precision of short-term options

Agricultural weekly options ADV traded over 10K in Q3, making it the best third quarter ever.

Chicago Wheat (+138%) and Soybean (24%) Weekly options followed suit, showing the highest percent growth YoY.

Volume centered around different time frames in relation to option maturity for Agricultural products, as shown in the below chart

Micro-sized options, major liquidity

Micro E-mini S&P 500 and Micro E-mini Nasdaq-100 options have now traded over 10M contracts since launch.  A record 62K contracts were traded on September 26, and Q3-2023 had a record ADV of 21.47K (+20% vs. Q2-23). Participation and interest are rising as traders seek to precisely manage risk and capture opportunities in the equity market.

It’s good to have (Equity) options

Equity options traded at record highs in Q3 2023. As volatility returns to the equity market toward quarter-end, traders continued to embrace the deepening liquidity and added flexibility of the suite.

CME Group Equity options trading set a new quarterly record ADV of 1.5M contracts and a monthly ADV record of 1.6M contracts in September.

E-mini S&P 500 options ADV was also a record in Q3 2023, averaging 1.35M contracts. Monthly ADV reached a record 1.5M contracts in September.

Henry Hub: the market leader for Natural Gas options

In September, Henry Hub Natural Gas options volume continued to grow, with 63% of the total volume being traded on-screen. In addition to monthly options, 24-hour liquidity is available in Henry Hub Friday Weekly options, making CME Group home to the most liquid

Energy options traders prefer CME Direct

CME Direct, the leading trading platform for Energy options volume, provides continuous 24-hour streaming liquidity for both Crude Oil and Natural Gas monthly and weekly options.

Execute covered, multi-leg strategies with a consolidated view of all trades, RFQs, crosses, and blocks. Plus, see all listed options for a futures contract.

Stay in the Know

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.

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