Options contract specifications

LME Nickel

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  NI 
Underlying metal  Ni 99.8% purity conforming to B39-79 (2008) 
Lot size  6 tonnes 
Contract months  Monthly out to 27 months 
Underlying contract  LME Nickel 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 options  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 Nickel 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.