कमोडिटी पर्याय

18.1 कमोडिटी पर्याय: भारतीय बाजारपेठेत दीर्घ प्रतीक्षित माईलस्टोन

वरुण: इशा, मी आधी इक्विटी पर्यायांचा व्यापार केला आहे, परंतु मला माहित नव्हते की MCX कमोडिटीजवरही पर्याय ऑफर करते.

इशा: होय, हा तुलनेने अलीकडील विकास आहे. सेबीने त्यांना 2017 मध्ये मंजूर केले, सोन्याच्या पर्यायांसह सुरू. आता आमच्याकडे क्रूड, कॉटन, मेंटा ऑईल आणि बरेच काही पर्याय आहेत.

वरुण: हा एक मोठा बदल आहे. ते उपयुक्त का आहेत?

इशा: कारण ते मर्यादित नुकसान ऑफर करतात. तुम्ही प्रीमियम भरता आणि मार्जिन तणावाशिवाय थेट एक्सपोजर मिळवता. हेजिंग किंवा हंगामी नाटकांसाठी परिपूर्ण.

वरुण: तर एक कॉटन मिल पुट पर्यायासह हार्वेस्ट रिस्क हेज करू शकते का?

इशा: अचूकपणे. आणि व्यापारी कृषी आणि ऊर्जा करारामध्ये अस्थिरता व्यवस्थापित करण्यासाठी कॉल्स किंवा पुट्स वापरू शकतात.

भारतात कमोडिटी ट्रेडिंगचा प्रवास जवळपास दोन दशकांपूर्वी वेगाने वाढला, ज्यामुळे 2005 च्या अखेरीस किंवा 2006 च्या सुरुवातीला पेपर फ्यूचर्स सारख्या प्रारंभिक करारांद्वारे चिन्हांकित केले गेले. तेव्हापासून, भारतीय कमोडिटी मार्केटमध्ये लक्षणीय परिवर्तन झाले आहे. मल्टी कमोडिटी एक्सचेंज (MCX) या उत्क्रांती-विस्तृत मार्केट ॲक्सेसमध्ये महत्त्वपूर्ण भूमिका बजावत आहे, विविध करार सुरू करीत आहे आणि लिक्विडिटी लक्षणीयरित्या वाढवते. एकदा विशिष्ट डोमेन हेजर्स, स्पेक्युलेटर्स आणि आर्बिट्रेजर्सना पूर्ण करणाऱ्या डायनॅमिक इकोसिस्टीममध्ये परिपक्व झाला होता.

या परिदृश्यातील एक सातत्यपूर्ण अंतर कमोडिटी पर्यायांची अनुपस्थिती होती. Around 2009, discussions about their potential introduction sparked widespread enthusiasm among market participants. Options were seen as a game-changer, offering greater flexibility in risk management and trade structuring. However, the momentum faded. The initiative stalled, and for years, commodity options remained more of a hopeful whisper than a tradable reality.

Regulatory Breakthrough and Market Roll-out

That changed in June 2017, when SEBI officially approved the launch of options on commodity futures. This was a landmark moment. Exchanges like MCX and NCDEX began building the infrastructure to support options trading, starting with Gold options, which were launched in October 2017.

Since then, the segment has expanded steadily. As of 2025, traders can access options on Gold, Silver, Crude Oil, Copper, Zinc, Natural Gas, Cotton, and Mentha Oil, among others. These contracts are European-style options settled in cash, and they’re based on the underlying futures contracts already listed on MCX.

Why Commodity Options Matter

Commodity options offer a powerful tool for managing risk. Unlike futures, which require margin and expose traders to unlimited losses, options provide asymmetric payoff structures. Buyers of call or put options can participate in price movements while capping their downside to the premium paid.

उदाहरणार्थ:

• A cotton mill can buy put options to hedge against falling cotton prices during harvest season.
• A gold jeweller can buy call options to lock in prices ahead of Diwali demand.
• A Mentha oil exporter can use options to protect against volatility in USD-INR and commodity prices simultaneously.

What to Expect When Trading Commodity Options

The theory behind options—Greeks, payoff diagrams, volatility, and pricing models—remains the same whether you’re trading equity options or commodity options. What changes is the logistics:

• अंतर्निहित मालमत्ता:Commodity options are based on futures, not spot prices.
• सेटलमेंट:Most contracts are cash-settled, but some may offer delivery-based options in future.
• समाप्ती: Typically aligned with the expiry of the underlying futures contract.
• Premiums: Quoted in rupees per unit (e.g., ₹/kg for Mentha Oil, ₹/bale for Cotton).
• Strike selection: Based on the prevailing futures price, with multiple strikes available.

2025 Snapshot: Active Commodity Options

Here are a few actively traded options contracts on MCX as of October 2025:

हे काँट्रॅक्ट्स साप्ताहिक आणि मासिक कालबाह्यता ऑफर करतात, ज्यामुळे ट्रेडर्सना शॉर्ट-टर्म आणि हंगामी रिस्क मॅनेज करण्याची लवचिकता मिळते.

18.2  फ्यूचर्सवर ब्लॅक 76: प्राईसिंग कमोडिटी ऑप्शन्स

वरुण: Isha, how do these commodity options actually settle?

इशा: Most are European-style and cash-settled. But if they’re ITM or CTM on expiry, they devolve into futures positions.

वरुण: What’s CTM?

इशा: Close-to-Money—two strikes above and below ATM. These need explicit instructions to be exercised. Otherwise, they expire worthless.

वरुण: And ITM options?

इशा: They’re auto-converted into futures unless you opt out. So you need to monitor your positions near expiry.

When trading commodity options, one key distinction you need to understand is this: commodity options in India are written on futures contracts—not on spot prices.

Let’s break this down with a comparison. If you’re trading a call option on Biocon, the underlying asset is the spot price of Biocon stock. Similarly, for Nifty options, the underlying is the live Nifty 50 index value. But when it comes to commodities—say, Crude Oil—the situation is different. India doesn’t have a formal spot market for crude or most other commodities. What we do have is a robust futures market, and that’s what commodity options are built on.

So, if you’re trading Crude Oil options on MCX, here’s the hierarchy:

• The underlying for the option is the Crude Oil futures contract.
• The underlying for the futures contract is the global benchmark price of Crude Oil on NYMEX.

This makes commodity options a derivative on a derivative. While that sounds complex, it doesn’t change much in terms of how you trade. But it does affect how the option premium is calculated.

Black-Scholes vs Black 76: What’s the Difference?

Most equity options like those on stocks or indices—use the Black-Scholes model to calculate premiums and Greeks. This model assumes the underlying asset is a spot price.

However, when the underlying is a futures contract, as in the case of commodity options, the correct pricing model is Black 76. This model is specifically designed for options on futures and adjusts how the risk-free interest rate is treated in the formula.

While both models share similar inputs strike price, volatility, time to expiry, and risk-free rate the Black 76 model replaces the spot price with the futures price and modifies the discounting mechanism.

व्यापाऱ्यांसाठी व्यावहारिक टिप

जर तुम्ही ऑनलाईन पर्याय कॅल्क्युलेटर वापरत असाल तर सावध राहा. ब्लॅक-स्कॉल्ससाठी बहुतांश टूल्स डिफॉल्ट आहेत आणि स्पॉट-आधारित इनपुट गृहीत धरतात. या कॅल्क्युलेटरमध्ये कमोडिटी फ्यूचर्स डाटा प्लग-इन केल्याने तुम्हाला अचूक प्रीमियम मूल्य आणि दिशाभूल करणारे ग्रीक मिळतील.

त्याऐवजी, ब्लॅक 76 ला स्पष्टपणे सपोर्ट करणारे कॅल्क्युलेटर किंवा प्लॅटफॉर्म पाहा. अनेक प्रोफेशनल ट्रेडिंग टर्मिनल्स आणि ब्रोकर प्लॅटफॉर्म आता योग्य मॉडेल वापरून कमोडिटी पर्यायांच्या किंमतीसाठी बिल्ट-इन सपोर्ट ऑफर करतात.

हे का महत्त्वाचे आहे

Understanding the pricing model isn’t just academic it affects how you interpret option premiums, manage risk, and structure strategies. Whether you’re buying a call on Crude Oil or a put on Mentha Oil, knowing that you’re dealing with futures-based options helps you align your expectations with market behaviour

18.3 Commodity Options: Contract Specifications and Settlement Mechanics

वरुण: Isha, how do these commodity options actually settle?

इशा: Most are European-style and cash-settled. But if they’re ITM or CTM on expiry, they devolve into futures positions.

वरुण: What’s CTM?

इशा: Close-to-Money—two strikes above and below ATM. These need explicit instructions to be exercised. Otherwise, they expire worthless.

वरुण: And ITM options?

इशा: They’re auto-converted into futures unless you opt out. So you need to monitor your positions near expiry.

With the successful roll-out of commodity options in India, exchanges like MCX have established a robust framework for trading options on futures contracts. While the initial launch focused on Gold options, the segment has expanded to include Crude Oil, Natural Gas, Silver, Cotton, Mentha Oil, and more. These contracts offer hedgers and traders a flexible tool to manage risk and express directional views with limited downside.

Let’s walk through the key specifications and operational details of commodity options as they stand today.

Core Contract Features

1. Option Types:Both Call and Put options are available.
2. अंतर्निहित मालमत्ता:These are options on futures, not spot prices. For example, a Crude Oil option is based on the MCX Crude Oil futures contract.
3. लॉट साईझ:Matches the lot size of the underlying futures contract. For instance, Gold options have a lot size of 1 kg, while Natural Gas options are sized at 1,250 mmBtu.
4. ऑर्डर प्रकार: All standard order types are permitted—Limit, Market, Stop Loss (SL), Stop Loss Market (SLM), Immediate or Cancel (IOC), Good Till Cancelled (GTC).
5. Exercise Style:Most contracts follow the European-style exercise, meaning they can only be exercised on expiry.
6. मार्जिन:

• Option Buyers: Pay the full premium upfront.
• Option Writers:Required to maintain SPAN + Exposure margin.
• Devolvement Margin:Applies when an option is exercised and converted into a futures position.

Expiry and Strike Structure

• Last Trading Day:Typically three business days before the last tender day of the underlying futures contract.
• Strike Range: Exchanges offer a wide selection of strikes—usually 31 strikes per series, comprising:

• 1 At-the-Money (ATM) strike
• 15 strikes above ATM
• 15 strikes below ATM

Understanding Moneyness: ATM, CTM, ITM, and OTM

Commodity options introduce a slightly modified classification system compared to equity options. Here’s how moneyness is defined:

• ATM (At the Money): The strike closest to the Daily Settlement Price (DSP) of the underlying futures on expiry.
• CTM (Close to Money): Includes two strikes above and two strikes below ATM. These are considered borderline ITM and require trader action.

ITM (In the Money):

• Call Options: All strikes below ATM (including CTM).
• Put Options: All strikes above ATM (including CTM).

OTM (Out of the Money):

• Call Options: All strikes above ATM.
• Put Options: All strikes below ATM.

Settlement Process and Instructions

Commodity options are settled via devolvement into futures contracts. ते कसे काम करते हे येथे दिले आहे:

CTM Options

If you hold a CTM option (e.g., a Gold ₹59,000 Call when DSP is ₹59,000), you must submit an explicit instruction via your trading terminal to convert it into a futures position. If no instruction is given, the option expires worthless, even if it’s technically ITM.

ITM Options (Non-CTM)

These are automatically devolved into futures positions unless you submit a contrary instruction to opt out. For example, if you hold a Mentha Oil ₹900 Put and the DSP is ₹880, the option is ITM and will convert into a short futures position at ₹900 unless you choose otherwise.

Why Opt Out of Devolvement?

There may be scenarios where exercising an ITM option is not economically viable:

• टॅक्स परिणाम: Exercising may trigger capital gains or speculative income.
• ट्रान्झॅक्शन कॉस्ट:Brokerage, exchange fees, and delivery charges may outweigh the benefit.
• Portfolio strategy:You may prefer to exit the position and avoid holding a futures contract.

In such cases, submitting a contrary instruction prevents automatic settlement and allows the option to expire without devolvement.

Illustrative Example: Cotton Options

Let’s say the DSP of Cotton (29mm) on expiry is ₹56,000 per bale. Strike intervals are ₹500.

• ATM: ₹56,000
• CTM: ₹55,000, ₹55,500, ₹56,000, ₹56,500, ₹57,000

ओटीएम:

• Calls: ₹56,500 and above
• Puts: ₹55,500 and below

आयटीएम:

• Calls: ₹55,000 and below
• Puts: ₹57,000 and above

If you hold a ₹55,000 Call, it’s ITM and will be automatically converted into a long futures position unless you opt out. If you hold a ₹56,500 Call, it’s CTM and requires explicit instruction to be exercised.

18.4 Devolvement: Transitioning Commodity Options into Futures

वरुण: Isha, if my option devolves into a futures position, do I need to fund margin?

इशा: Yes. That’s where devolvement margin comes in. You need 50% margin one day before expiry, and the rest on expiry day.

वरुण: What if I don’t want the futures position?

इशा: Then submit a contrary instruction. Especially if the tax impact or transaction costs outweigh the benefit.

वरुण: So devolvement isn’t automatic for CTM, and optional for ITM?

इशा: अचूकपणे. It’s all about managing exposure and making informed expiry decisions.

When trading commodity options, it’s important to understand what happens when an In-the-Money (ITM) or Close-to-Money (CTM) option reaches expiry. Unlike equity options, which are typically cash-settled, commodity options on MCX devolve into futures contracts. This means your option position transforms into a futures position at the strike price, provided certain conditions are met.

But here’s the catch: futures contracts require margin, and most option buyers haven’t parked that margin upfront. To address this, exchanges have introduced a mechanism called the Devolvement Margin.

Why Devolvement Margin Is Necessary

When you buy an option, you only pay the premium. There’s no obligation to maintain margin for a futures position unless the option is exercised. However, if your option is likely to expire ITM or CTM and you intend to hold it through expiry, you must be prepared to fund your account with sufficient margin to support the resulting futures position.

This is where Devolvement Margin comes into play. It ensures that traders who wish to carry their ITM/CTM options into futures have the necessary capital in place before expiry.

How Exchanges Handle Devolvement

A few days before expiry, exchanges conduct a sensitivity analysis—a “what-if” scenario—to identify which strikes are likely to be ITM or CTM based on prevailing market prices. Based on this report, they begin assigning Devolvement Margin requirements to those positions.

Here’s how the margin funding works:

• 50% of the required margin must be available one day before expiry.
• The remaining 50% must be funded on the day of expiry.

Example: Gold Options (October 2025)

Let’s say the Gold options contract expires on 28 October 2025, and the corresponding Gold futures contract expires on 5 November 2025.

• If you hold a ₹59,000 Call option and the DSP is ₹59,200, your option is ITM.
• On 27 October, you must ensure half the margin required for a long Gold futures position is available in your account.
• On 28 October, the remaining margin must be funded to complete the devolvement.

Impact of Option Depth on Margin

The deeper your option is ITM, the lower the devolvement margin required. This is because the intrinsic value of the option offsets part of the margin obligation. Conversely, CTM options, which are borderline ITM, attract higher margin requirements, as their intrinsic value is minimal or uncertain.

This structure encourages traders to monitor their positions closely and make informed decisions about whether to exercise or exit before expiry.

Devolvement Mapping: What Your Option Becomes

Here’s a quick reference for how different option positions convert into futures:

So, if you hold a Mentha Oil ₹920 Put and the DSP is ₹910, your position will devolve into a short Mentha Oil futures contract at ₹920, provided you meet the margin requirements.

Opting Out: When You Might Avoid Devolvement

There may be cases where exercising an ITM option isn’t beneficial:

• टॅक्सेशन: Exercising may trigger capital gains or speculative income.
• ट्रान्झॅक्शन कॉस्ट: Brokerage, exchange fees, and delivery charges may outweigh the benefit.
• Strategic Reasons:You may prefer to exit the position and avoid holding a futures contract.

In such cases, you can submit a Contrary Instruction to prevent automatic devolvement. This must be done before expiry via your trading terminal.

18.5 मुख्य टेकअवे

• Commodity options were introduced in India in 2017, starting with Gold and expanding to multiple assets.
• These options are written on futures contracts, not spot prices, making them derivatives on derivatives.
• Black 76 is the correct pricing model, replacing spot price with futures price and adjusting discounting.
• Using Black-Scholes for commodity options leads to inaccurate premiums and Greeks.
• Options offer asymmetric payoff, allowing traders to cap losses while participating in price moves.
• बहुतांश काँट्रॅक्ट्स युरोपियन-स्टाईल व्यायामाचे अनुसरण करतात, म्हणजेच त्यांचा वापर केवळ कालबाह्यतेनंतर केला जाऊ शकतो.
• सीटीएम पर्यायांना विकसित करण्यासाठी स्पष्ट सूचना आवश्यक आहे, तर निवड न केल्याशिवाय आयटीएम पर्याय ऑटो-कन्व्हर्ट केले जातात.
• Devolvement margin must be funded in two stages, ensuring traders are prepared for futures exposure.
• स्ट्राइक निवड आणि मनीनेस वर्गीकरण इक्विटी पर्यायांपेक्षा थोडेफार वेगळे आहे, प्रति सीरिज 31 स्ट्राइकसह.
• ट्रेडर्सनी कालबाह्यतेवर बारीक नजर ठेवणे आवश्यक आहे, आवश्यक असल्यास सूचना सादर करणे आणि खर्च आणि स्ट्रॅटेजी सापेक्ष वजन विकास करणे आवश्यक आहे.

18.5 मजेदार कृती

फन ॲक्टिव्हिटी: “मॉडेल मॅच”

कच्च्या तेलाच्या पर्यायांसाठी कोणते मूल्य मॉडेल?

• ब्लॅक-स्कॉल्स
• ब्लॅक 76

उत्तर: फ्यूचर्स वरील पर्यायांसाठी ब्लॅक 76 अचूक-वापरले जाते.