Options contract specifications

LME Aluminium

Options contracts give the buyer of the contract the right but not the obligation to buy (call option) or sell (put option) a futures contract at a set price. The buyer pays a premium for this right.

Contract code  AH 
Underlying metal High grade primary aluminium 
Lot size 25 tonnes 
Contract months Monthly out to 63 months 
Underlying contract LME Aluminium futures - third Wednesday prompt of the contract month 
Price quotation  US dollars per tonne 
Clearable currencies US dollar, Japanese yen, sterling, euro
Option style American
Trading deadlines
Tuesday before the first Wednesday of the prompt month:

• Last trading time - by 18.00 
• Last matching and registration - by 18.15
 
Expiry date/time
Any LME business day up to and including the first Wednesday of the expiring option month, from 08.00 up to:

• 11.15 for clearing members 
• 11.10 for clients
Minimum price fluctuation (tick size)
$0.01 per tonne
Strike price intervals
• $25 - for strikes from $25 to $9,975 
• $50 - for strikes from $10,000 to $19,950 
• $100 - for all strikes over $20,000
Exercise of option
Option exercise is a manual process.

LME Clear auto-exercise in the money options that are equal to or greater than two strikes above and two strikes below the at-the-money strike, as determined by the end of day valuation price of the relevant third Wednesday prompt of the contract month, on the evening before the first Wednesday expiry day. There is manual exercise for the remaining close-to-the-money options. Options exercise will result in a third Wednesday futures contract.
Payment terms One business day following the trade day
Settlement type Physical
Trading venues Ring, inter-office telephone and LMEselect (as a delta hedged option only)

 

LME Aluminium Contract specifications

This is a summary of the contract specifications. For full contract specification details, please refer to the LME Rulebook and for other information, please refer to our disclaimer page. 

Note that all contracts are subject to the LME’s rules and regulations and LME Clear span margining.