Establishing A Poultry Feed Cost Range
CBOT Contract Changes Spell New Trading Opportunities
| Contract Size |
|
One CBOT Wheat futures contract (of a specified contract month) of 5,000 bushels |
| Tick Size |
| 1/8 cent/bushel ($6.25/contract) |
| Strike Price Intervals |
| 5 cents/bushel for the first two months and 10 cents/bushel for all other months. At the commencement of trading, list 5 strikes above and 5 strikes below the at-the-money strike. |
| Contract Months |
|
Jul, Sep, Dec, Mar, May; a monthly (serial) option contract is listed when the front month is not a standard option contract. The monthly option contract exercises into the nearby futures contract. For example, an August option exercises into a September futures position. |
| Last Trading Day |
| For standard option contracts: The last Friday preceding the first notice day of the corresponding wheat futures contract month by at least two business days.
For serial option contracts: The last Friday which precedes by at least two business days the last business day of the month preceding the option month. |
| Exercise |
|
The buyer of a futures option may exercise the option on any business day prior to expiration by giving notice to the Board of Trade clearing service provider by 6:00 p.m. Chicago time. Option exercise results in an underlying futures market position. Options in-the-money on the last day of trading are automatically exercised. |
| Expiration |
|
Unexercised Wheat futures options shall expire at 7:00 p.m. on the last day of trading. |
| Trading Hours |
| Electronic: 6:00 p.m. - 6:00 a.m. and 9:30 a.m. - 1:15 p.m. Central Time, Sun.-Fri. Open Auction: 9:30 a.m. - 1:15 p.m. Central Time, Mon-Fri. |
| Ticker Symbols |
| Open Auction: WY for calls/WZ for puts Electronic: OZW |
| Daily Price Limit |
| Sixty cents ($0.60) per bushel ($1,500/contract) above or below the previous day's settlement premium. Limits are lifted on the last trading day. |
| Margin Information |
| Find information on margins requirements for the Wheat Options. |
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