How does Crude Oil Option expiry work?

How does Crude Oil Option expiry work? I know it will be converted to FUT contract but what will be the spot price? Can someone please explain?

Example:
Crude Oil Option April expiry today
Open position: Crude Oil Short 5600 P.E, 3 Lots at 171 Premium
Today’s Crude oil closing price = 5300

  1. What will be the FUT position Strike price if I don’t close my position? 5600-171 (premium)?
  2. And the converted FUT contract will be of April month or May month?

@ShubhS9 @Meher_Smaran Can someone please explain?

Adding to this

So FUT never converges to spot acc to this

@Meher_Smaran @nithin_kumrr @Ragavendran_M

Could you guys tell the exact ticker name of New York Mercantile Exchange’s (NYMEX)# Crude Oil which can be seen on Trading view

  1. Your future position will be with an average price of 5600. MTM will be adjusted based on the close price of the futures contract.
  2. Devolved futures will be of the April contract.
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Did not understand first point? Average of 5600? Can you please explain what will be the FUT in my given example? and what about the Premium sold? 170?

You already received the premium, so no change in that. You will get a long contract with a buy average of 5600. If the close price of the future contract is 5300, Rs 300 (5600-5300) will be the MTM loss debited.

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Search with “CL1!”.

Spot is WTI.