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MCX has recorded a turnover of ₹34 crore in the silver options contract launched on Thursday. It logged volume of 278 lots at the end of first trading session at 5 pm.
The options contracts expiring in June, August, November, February and April are available for trading with corresponding silver (30 kg) futures as underlying. Each option expiry has minimum twenty one strikes available — ten each for ‘In the Money’ and ‘Out of the Money’ and one ‘near-the-money’ with strike price intervals of ₹250.
The European-styled silver options with a tick size of ₹0.50 are physically settled, which means the exercised positions of the options contract post expiry will devolve into the respective underlying future positions.
The contract will enable the silver stakeholders, including industrial consumers and producers harness the benefits of a new risk management tool.
Surendra Mehta, National Secretary, India Bullion & Jewellers Association, said the silver option would provide an opportunity to hedge and mitigate price risk in a more flexible and cost effective manner.
MCX currently facilitates options trading in gold, crude oil and copper.
Gold options registered a turnover of ₹340 crore while crude oil and copper recorded turnover of ₹43 crore and ₹6 crore, respectively.
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