# MCX Options Trading: Lot Sizes, Expiry and Crude Oil Examples Author: AlgoTest Author URL: https://algotest.in/blog/author/algotest/ Published: 2026-10-30 Category: MCX Category URL: https://algotest.in/blog/category/mcx/ Meta Description: Learn how MCX options work, with lot sizes, crude oil premium examples, Gold vs Gold Mini, expiry rules and ways to practise and backtest strategies. Tags: options trading, mcx Tag URLs: options trading (https://algotest.in/blog/tag/options-trading/), mcx (https://algotest.in/blog/tag/mcx/) URL: https://algotest.in/blog/mcx-options-trading/ MCX options are European-style options on commodity futures traded on the Multi Commodity Exchange of India. A call gives its buyer the right to take a long futures position at the strike price; a put gives the right to take a short futures position. Exercised options become futures positions, which require futures margin. You can trade options on crude oil, natural gas, gold, silver, copper and zinc. Before placing a trade, check the exact contract, its lot size (the number of units the premium is multiplied by), expiry and settlement method. **Quick answer: how MCX options work** - One option lot corresponds to one lot of its underlying futures contract. - Buyers pay the premium upfront; sellers need margin. Buyers may also need devolvement margin near expiry. - Options can be bought or sold before expiry, subject to liquidity and broker restrictions. European-style means they can only be exercised at expiry. - Options expire before their underlying futures. Crude oil and natural gas options expire two business days earlier, and Gold Mini and copper options expire three business days before the futures’ tender period begins. - ITM options are normally exercised automatically unless the long holder submits a valid contrary instruction. OTM options expire worthless. - Energy futures are cash-settled; the metal futures covered below can lead to physical delivery. > Trade MCX options with tested rules. [Sign up free on AlgoTest](https://algotest.in/register?utm_source=blogs&utm_medium=organics&utm_campaign=seo&utm_source=blogs&utm_medium=organics&utm_campaign=seo) to replay past sessions, build option strategies and backtest them on MCX data. ## MCX Options Lot Sizes and Premium Units Option contract Lot size Premium quoted per Underlying futures settlement Crude Oil 100 barrels 1 barrel Cash Crude Oil Mini 10 barrels 1 barrel Cash Natural Gas 1,250 MMBtu 1 MMBtu Cash Natural Gas Mini 250 MMBtu 1 MMBtu Cash Gold 1 kg 10 grams Physical delivery Gold Mini 100 grams 10 grams Physical delivery Silver 30 kg 1 kg Physical delivery Silver Mini 5 kg 1 kg Physical delivery Copper 2,500 kg 1 kg Physical delivery Zinc 5 tonnes 1 kg Physical delivery These lot sizes match Zerodha’s published MCX options list. Broker availability can vary by expiry and liquidity. Our [MCX lot size](https://algotest.in/blog/mcx-lot-size/) guide explains how to convert contract quantities into rupee exposure. ## How MCX Options Differ From Nifty and Sensex Options MCX options use a commodity futures price to determine moneyness, rather than a spot index. Exercised options become futures positions, while Nifty and Sensex index options settle in cash. MCX commodity options also trade into the evening. Normal sessions for the contracts above run from 9 AM to 11:30 PM or 11:55 PM IST, depending on the seasonal schedule. Check [MCX trading timings](https://algotest.in/blog/mcx-trading-time/) and your broker’s earlier square-off cutoffs. To compare strikes, open interest, volume and IV, read our [MCX option chain guide](https://algotest.in/blog/how-to-read-mcx-option-chain/). Check liquidity in the exact option you want to trade; an active futures contract does not guarantee an active option strike. ## Crude Oil Options: Premium and P&L Example One Crude Oil option lot covers 100 barrels. If a call trades at ₹120 per barrel, buying one lot costs ₹120 × 100 = ₹12,000, before charges. If you close that position before expiry: Premium when you sell Calculation Gross P&L ₹150 per barrel (₹150 − ₹120) × 100 ₹3,000 profit ₹90 per barrel (₹90 − ₹120) × 100 ₹3,000 loss This P&L follows the change in the option premium. A ₹30 move in crude oil futures does not necessarily produce a ₹30 change in the option premium. Time remaining, volatility and the strike also affect its price. At the same ₹120 premium, one Crude Oil Mini option lot costs ₹1,200 because it covers 10 barrels. Actual standard and mini premiums can differ. See our [Crude Oil and Crude Oil Mini lot size](https://algotest.in/blog/crude-oil-lot-size/) guide for the exposure calculation. ## Trading Crude Oil Options Around EIA Data The US Energy Information Administration normally publishes its Weekly Petroleum Status Report on Wednesdays at 10:30 AM Eastern. Its natural-gas storage report normally follows on Thursdays at the same time. US time regime Normal 10:30 AM Eastern release in India Daylight saving time 8 PM IST Standard time 9 PM IST Holiday schedules can change both the day and time. For example, the petroleum report scheduled for 12 November 2026 is at noon Eastern, or 10:30 PM IST. Check the [EIA petroleum release calendar](https://www.eia.gov/petroleum/supply/weekly/schedule.php) and natural-gas release calendar before planning a trade. Around a release: - A drop in implied volatility can reduce an option’s premium even if the futures price moves in the buyer’s expected direction. - Option sellers face the risk of a sharp move. A higher premium does not make the position safer. - Spreads can widen. A limit order controls your acceptable execution price, but may remain unfilled. ## Practise an Event Session on AlgoTest AlgoTest’s [Option Simulator](https://algotest.in/feature/simulator?utm_source=blog&utm_medium=seo&utm_campaign=simulator&utm_source=blog&utm_medium=seo&utm_campaign=simulator) supports historical MCX replay for crude oil, natural gas, gold and silver. Choose an available date and contract, build an options position, then move through the session to inspect premium changes and P&L. Compare an event day with a quieter session using the same entry and exit rules. Historical replay helps you practise decisions; it does not reproduce every live fill or liquidity constraint. > See how your trade idea behaved around a data release. [Create your AlgoTest account](https://algotest.in/register?utm_source=blogs&utm_medium=organics&utm_campaign=seo&utm_source=blogs&utm_medium=organics&utm_campaign=seo) and explore the Simulator’s available MCX contracts and dates. ## Gold vs Gold Mini Options Detail Gold options Gold Mini options Underlying Gold futures Gold Mini futures Lot size 1 kg 100 grams Premium quoted per 10 grams 10 grams Total premium at a ₹1,000 quote ₹1,00,000 ₹10,000 P&L for a ₹1 premium change, per lot ₹100 ₹10 At the same quoted premium, Gold Mini costs one-tenth as much per lot. That does not mean actual premiums always have a fixed relationship. The contracts use different underlying futures and can have different expiries, spreads and liquidity. A smaller lot reduces exposure, but it does not automatically make a trade affordable or suitable. Compare the possible loss with your capital. Our [gold lot size](https://algotest.in/blog/gold-lot-size/) guide covers the different gold futures contracts. > Compare the position before placing it. Use the [AlgoTest Strategy Builder](https://algotest.in/feature/strategy-builder?utm_source=blog&utm_medium=seo&utm_campaign=strategy-builder&utm_source=blog&utm_medium=seo&utm_campaign=strategy-builder) to inspect supported option positions, breakevens and payoff. Review margin and expiry obligations separately from the payoff graph. ## MCX Option Expiry and Devolvement Options expire before their underlying futures. Crude oil and natural-gas options generally expire two business days before their futures. Gold Mini and copper options expire three business days before the underlying futures’ tender period begins. Always use the listed expiry for your exact contract. ## October 2026 Expiry Examples The following dates are from Zerodha’s October 2026 expiry bulletin. They illustrate the differences between contracts; they are not a rolling calendar of upcoming expiries. Option contract October 2026 expiry Crude Oil and Crude Oil Mini 15 October Natural Gas and Natural Gas Mini 23 October Copper and Zinc 23 October Silver and Silver Mini 27 October Gold Mini 29 October Gold 30 October An option’s expiry month need not match its underlying futures month. Confirm both in the contract details, and check the [MCX holiday calendar](https://algotest.in/blog/mcx-holidays/) for session closures. ## What Happens When an Option Is Exercised? Devolvement means an exercised option becomes a position in its underlying futures contract. Option position Futures position on exercise or assignment Long call Long futures Short call Short futures Long put Short futures Short put Long futures Devolved futures positions are opened at the option’s strike price. ITM options are normally exercised automatically unless the long holder submits a valid contrary instruction. OTM options expire worthless. If the strike equals the settlement price exactly, the option also expires worthless. **CTM clarification:** MCX discontinued the old close-to-the-money exercise category for contracts launched from 1 February 2022. Brokers may still use “CTM” to calculate margin, but that does not mean near-ATM options require an explicit exercise request. ## Margin and Delivery After Devolvement A futures position needs futures margin. Brokers may block devolvement margin before option expiry and close positions that do not meet their funding rules. Zerodha’s October bulletin, for example, specifies 100% futures margin for NRML ITM long options and 50% for its CTM long-option category on expiry day. Cash-settled crude oil and natural-gas futures do not require physical delivery. Gold, silver, copper and zinc futures can create delivery obligations during the tender period or at expiry. After devolvement, further futures losses can exceed the original option premium. #### Before-Expiry Checklist 1. Confirm the option expiry and underlying futures contract. 2. Check your broker’s margin and square-off deadlines. 3. Decide whether to close, roll or retain the position before those deadlines. 4. If retaining it, understand futures funding and settlement obligations. 5. For deliverable futures, check the tender-period start date. Include these checks in your [trading risk-management plan](https://algotest.in/blog/trading-risk-management-rules-examples-and-a-practical-plan/). ## Margin and Charges for MCX Options Buyers pay the full premium upfront and may need additional funds near expiry. Sellers need risk-based margin. Eligible hedges can reduce margin, but the benefit depends on the exact legs and the applicable rules. Confirm the requirement with your broker before placing or changing a position. Our [MCX margin](https://algotest.in/blog/mcx-margin/) guide explains how margin is set. Charges include brokerage, exchange fees, SEBI charges, GST, stamp duty and applicable Commodities Transaction Tax (CTT): - **Sale of an option on commodity futures:** CTT is 0.05% of the premium transaction value, payable by the seller. - **Exercise of an option on commodity futures:** CTT is 0.0001% of the settlement-price-based transaction value, payable by the purchaser. These are separate taxable events. Transaction value accounts for contract quantity and quotation units; it is not simply the displayed per-unit price. Further futures transactions can attract their own charges. Refer to [MCXCCL’s CTT schedule](https://www.mcxccl.com/clearing-settlement/commodities-transaction-tax). ## Backtest MCX Option Strategies on AlgoTest Use [AlgoTest Backtesting](https://algotest.in/feature/backtest) to evaluate rules on historical crude oil, natural gas, gold and silver data. Each report shows total and year-wise P&L, cumulative P&L against the underlying, win rate, risk-reward ratio, maximum drawdown, winning and losing streaks, Monte Carlo analysis, DTE and weekend filter performance, and downloadable trade logs. Include trading costs and realistic slippage assumptions. Check which contracts, dates and expiry behaviour your chosen test supports. A historical result does not guarantee future performance or reproduce every live margin and delivery requirement. Our guide to [backtesting options trading strategies](https://algotest.in/blog/how-to-backtest-options-trading-strategies-with-examples/) explains how to define rules and assess results. Use the Simulator for session-by-session practice and Backtesting to evaluate repeatable rules over a wider sample. For supported MCX contracts, AlgoTest also offers live execution through Zerodha. Confirm your plan, broker connection and contract support before deployment. > Test your MCX option strategy on past data. [Sign up to get 100 Backtests free/month](https://algotest.in/register?utm_source=blogs&utm_medium=organics&utm_campaign=seo&utm_source=blogs&utm_medium=organics&utm_campaign=seo) ## Trade MCX Options With a Plan for Expiry Start with the contract’s lot size, which sets how much each ₹1 change in the premium is worth. Then check liquidity, possible loss, margin and expiry. Buying an option and carrying the futures position created at exercise are different commitments. Build the position, practise the decisions and test the rules before committing live capital. [AlgoTest](https://algotest.in/register?utm_source=blogs&utm_medium=organics&utm_campaign=seo&utm_source=blogs&utm_medium=organics&utm_campaign=seo) helps you move from an idea to a strategy you can inspect and test before deciding whether to deploy. Join us as we simplify retail trading in India. Start Free ### Related Reading - [What Is Commodity Trading?](https://algotest.in/blog/what-is-commodity-trading/) - [Silver Lot Sizes on MCX](https://algotest.in/blog/silver-lot-size/) - [MCX Copper Lot Size and Tick Value](https://algotest.in/blog/mcx-copper-lot-size/) - [Commodity Brokers in India Compared](https://algotest.in/blog/7-best-commodity-brokers-in-india/) ### FAQs #### What are MCX options? MCX options are European-style options on commodity futures, such as crude oil, natural gas, gold, silver, copper and zinc. A call gives the right to take a long futures position at the strike price, and a put gives the right to take a short futures position. #### When do MCX options expire? MCX options expire before their underlying futures. Crude oil and natural gas options generally expire two business days before their futures, and Gold Mini and copper options three business days before the futures’ tender period begins. Always check the listed expiry for your contract. #### What is devolvement in MCX options? Devolvement is when an exercised option turns into a position in its underlying futures at the strike price. In-the-money options are exercised automatically unless the holder opts out, so you need futures margin, and for gold, silver, copper and zinc the position can lead to delivery. #### Can I sell an MCX option before expiry? Yes, you can generally close a bought option by selling the same contract before expiry, subject to liquidity and broker restrictions. European-style limits when it can be exercised, not when it can be traded. #### How much does one Crude Oil option lot cost? Multiply the quoted premium per barrel by 100. At ₹120, one standard lot costs ₹12,000 before charges. A Crude Oil Mini lot covers 10 barrels, so the same premium quote gives a ₹1,200 cost. #### Are MCX option buyers’ losses limited to the premium? A standalone long option can lose its premium plus charges. However, if it is exercised into futures and you retain that position, further futures losses can exceed the original premium. Check devolvement and margin rules before expiry. #### Is Gold Mini always one-tenth the price of Gold options? Only when comparing the same quoted premium per 10 grams. Gold Mini’s lot size is one-tenth of Gold’s, but actual premiums differ with the underlying futures, expiry and liquidity. #### What time is EIA crude oil data released in India? The normal Wednesday release is at 8 PM IST during US daylight saving time and 9 PM IST during standard time. Holiday releases can have a different day and time, so check EIA’s petroleum calendar. #### Can I practise MCX options without risking money? AlgoTest’s Option Simulator supports historical replay for crude oil, natural gas, gold and silver. Select from the contracts and dates available in your account to practise entries and exits. Access depends on the applicable plan and data coverage. _This article is educational. Contract specifications, exchange rules and broker requirements can change; confirm the details for your trade._ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---