Micro Ether Options

What makes the contract Micro?

CME’s U.S. dollar-denominated Micro Ether futures represent 0.1 ETH. An option on that future uses the same underlying quantity. The standard contract represents 50 ETH. The premium quotation is per ether, so multiply it by the quantity to find the contract premium.

For the broader introduction to calls, puts and premiums, start with Ether Options. A Micro contract is a specific futures product, not an informal name for any small option trade.

Call and put example terms

The examples below use the contract price units and multiplier stated in this lesson.

Prices and premiums are hypothetical. The result measures expiry value and assumes any delivered position is closed at that price without additional movement or costs. It does not assume that every option settles in cash.

Buying micro ether calls

A call gives its buyer upside exposure to the specified underlying. For this example, use a strike of 3,000 price units and a premium of 100 price units. With the stated multiplier of 0.1, the premium cost is USD 10.

At expiration with the underlying at 3,300, intrinsic value is (3,300 − 3,000) × 0.1 = USD 30. After the premium, the gain is USD 20 before other costs.

At or below the strike, the call has no intrinsic value and loses its whole premium. Breakeven at expiration is 3,100 price units. At 3,050, the call is in the money but still loses USD 5 after the premium.

Buying micro ether puts

A put gives its buyer downside exposure. Assume the same 3,000 strike and 100-unit premium, costing USD 10 with the same multiplier. The equal call and put premiums are hypothetical, not a claim about actual market quotes.

At expiration with the underlying at 2,700, intrinsic value is (3,000 − 2,700) × 0.1 = USD 30. Subtracting the premium leaves USD 20 before costs.

At or above the strike, the put loses its full premium. Its breakeven is 2,900 price units. At 2,950, it is in the money but still loses USD 5 after the premium. Before expiration, time and implied volatility also affect the price; these expiry calculations do not predict its resale value.

The premium and the next position

A correct price view does not guarantee a profit. The move must be large enough and arrive before expiry to recover the premium. Before expiry, time remaining and implied volatility affect the price available when selling to close.

The premium limits the standalone purchased option’s loss. Exercise can create another position requiring funding or margin, and keeping that position introduces further risk. An uncovered seller can lose much more than the premium received.

What happens at expiration?

These CME options are European-style and exercise into the specified futures. Monthly delivered futures immediately settle to cash; weekly series can leave an open futures position. Check the selected option and futures dates together.

Micro futures are not a delivery of coins to a wallet. Read Crypto Options Settlement and Risks for the distinction between an option’s expiry value and the obligations of a resulting position.

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