Option strip spread transactions can be recorded on your trading cards and submitted to the Exchange on pit cards in the following concise format:

EXAMPLE: Strip Spreads

BUY Diff SELL

100 X/H 450 P 20.0 OppBkr ABC 20 100 X/H 650 C 40.0 OppBkr ABC

The above transaction represents a strip spread where the selling broker is submitting a pit card for a transaction to:

Buy 100 lots per month, November through March, 450 Puts at a price of 20, and Sell 100 lots per month, November through March, 650 Calls at a price of 40. The differential is marked in the center as 20.

This transaction will be entered into TMS by NYMEX Staff as five (5) separate spread transactions, one for each month. Allocations will then need to be completed by your clerks.

If the above transaction is repeated because there are multiple opposite brokers but the terms of the transaction remain the same, the recording broker needs to provide the names of the various opposite brokers on the sequential lines of the trading card, and then indicate that the rest of the trade information is the same by carrying down a straight line underneath columns to be duplicated.

Please click for an example.