Multi Commodity Exchange of India (MCX) has commenced options trading in crude oil contract on May 15, 2018. The contract has witnessed traded volume of 2058 lots with value of Rs 101.67 crore. The exchange has currently launched June and July 2018 option contracts in crude oil, with one MCX crude oil futures contract (100 barrel) as the underlying. On its expiry, if exercised, the open position shall devolve into the respective underlying futures position.
This new options contract alongside the popular crude oil and crude mini (10 barrel) futures contracts will benefit the crude oil stakeholders, providing them with an efficient solution to hedge against unfavourable price movements in the global crude oil markets.
In order to encourage active participation in the market the exchange is not levying any transaction fees on the commodity options contracts including crude oil till September 30, 2018.