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 | PB |
Underlying metal | Lead of 99.97% purity (minimum) |
Lot size | 25 tonnes |
Contract months | Monthly out to 15 months |
Underlying contract | LME Lead 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) |
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.
For further information please get in touch.