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Silver Options Specifications

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SILVER

Silver Options Contract Specifications

The silver contract specifications tell you how the silver options trade, not how to trade to silver options. Before you consider opening a commodity options account you should consult with a licensed commodities broker.

SILVER OPTIONS

Trading Unit

One COMEX Division silver futures contract.

Price Quotation

U.S. cents per troy ounce.

Trading Hours (All times are New York time)

Open outcry trading is conducted from 8:25 AM until 1:25 PM.

Electronic trading is conducted via the CME Globex® trading platform from 6:00 PM Sundays through 5:15 PM Fridays, Eastern Time, with a 45-minute break each day between 5:15 PM and 6:00 PM. Off-Exchange transactions can be submitted solely for clearing to the NYMEX ClearPort® clearing website as an exchange of futures for swaps (EFS) or exchange of futures for physicals (EFP) transaction until 5:15 PM, Monday through Friday, and the day preceding a holiday.

Trading Months

The nearest five of the following contract months: March, May, July, September, and December. Additional contract months – January, February, April, June, August, October, and November – will be listed for trading for a period of two months. A 60-month options contract is added from the current calendar month on a July/December cycle.

Minimum Price Fluctuation

Price changes for outright transactions, including EFPs, are in multiples of one-half cent (0.5¢ or $0.005) per troy ounce, equivalent to $25.00 per contract. For straddle or spread transactions, as well as the determination of settlement prices, the price changes are registered in multiples of one-tenth of a cent (0.10¢ or $0.001) per troy ounce, equivalent to $5.00 per contract. A fluctuation of one cent (1¢ or $0.01) is equivalent to $50.00 per contract.

Maximum Daily Price Fluctuation

No price limits.

Last Trading Day

Expiration occurs on the fourth business day prior to the underlying futures delivery month. If the expiration day falls on a Friday or immediately prior to an Exchange holiday, expiration will occur on the previous business day.

Exercise of Options

Until one hour after the contract market close, New York time, on any business day for which the options contract is listed for trading. On expiration day, the buyer has until 4:30 PM, New York time, to exercise an options contract.

Strike Prices

10¢ ($0.10) and 25¢ ($0.25) per ounce apart for strike prices less than or equal to $8.00; 25¢ ($0.25) per ounce apart for strike prices greater than $8.00 and up to $15.00; and 50¢ ($0.50) per ounce apart for strike prices greater than $15.00 during the first six nearby trading months.

For all other months up to two years to expiration, increments are 25¢ ($0.25) per ounce apart for strike prices up to $8.00; 50¢ ($0.50) per ounce apart for strike prices greater than $8.00 and up to $15.00; and $1.00 per ounce apart for strike prices greater than $15.00.

For months greater than two years to expiration, strike increments will be $1.00.

Margin Requirements

Margins are required for open short options positions. The margin requirement for an options purchaser will never exceed the premium paid.

Trading Symbol

SO

Click here to contact a commodities broker with experience in the silver market.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicition. This material is not a research report preparfed by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

 
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