MCX is launching Options on Silver Mini (5kg) Futures contracts

MCX is introducing Options on Futures with Silver Mini (5 KG) as underlying from 19th July 2021

Contract Specification -

Exchange MCX
Contract Silver Mini (SilverM)
Product SilverM Options
Underlying SilverM futures of that particular month
Trading Units 5 Kg
Underlying Quotation Re 1 per every 1 KG
Minimum Tick Size Rs 0.5
Strike Interval 250
Margins SPAN + ELM (Extreme Loss Margin) for Short options and Premium for Long options
Additional/Special Margin Decided by MCXCCL from time to time
Expiry Three business days prior to the first business day of Tender
Period of the underlying futures contract.
Pre-Expiry Margin
(Devolvement Margin)
Applicable on all ITM and CTM (Long Options) beginning from 1 day to expiry
Due Date Rate (Final
Settlement Price)
Daily settlement price of underlying futures contract on the expiry day of options contract.
Settlement Type Based on option position, all exercised will be devolved into futures of same month expiry

Contract Details -

Particulars Dates Dates Dates Dates Dates
Contract Silver Mini Option 20 August 2021 Silver Mini Option 19 November 2021 Silver Mini Option 17 February 2022 Silver Mini Option 20 April 2022 Silver Mini Option 21 June 2022
Underlying Futures Contract Silver Mini
31 August 2021
Silver Mini
30 November 2021
Silver Mini
28 February 2022
Silver Mini 29 April 2022 Silver Mini 30 June 2022
Contract Start Date July 19, 2021 July 19, 2021 July 19, 2021 July 19, 2021 July 19, 2021
Option Contract Expiry Date August 20, 2021 November 19, 2021 February 17, 2022 April 20, 2022 June 21, 2022

For more details -

MCX Silver launch

1 Like

How is the liquidity in option contracts?

One way to find that out would be via the daily reports disclosing the OI/Turnover for all instruments and segments. For finding the liquidity for specific expiries, the option chain would also be helpful.

Also, there was a recent article that mentions about the increase in turnover of Crude Oil options on MCX -

The exchange has been trying to encourage participation in options and has waived off Exchange transaction charges for trading options (Refer to the circular - MCX/TRD/188/2021)