Aluminum options in the main lesson use the LME high-grade aluminium futures benchmark. Choose an option on that product when comparing the example with an order ticket; a similar commodity name does not guarantee the same exposure.
Exchange and broker access
Access is normally arranged through an LME member or an intermediary with access to that market. LME metal options may require specialist brokerage rather than a standard retail stock-options account.
Use the official product specifications to identify the contract, then check availability with your broker for your country and account type. A published contract specification does not guarantee active quotes at every strike or expiry.
Size, quotation and expiration
The example contract covers 25 tonnes. A $100-per-tonne premium costs $2,500 for one option before fees. Keep the quotation currency and quantity consistent.
A manufacturer buying aluminium may use calls to help manage rising input costs. The LME price does not include every regional delivery premium.
Identify both the option expiration and the underlying futures month. Their dates need not match. Weekly and monthly options can have different exercise terms; use the selected series, not a general product nickname.
Costs and available liquidity
Compare commissions, exchange fees, data charges and the bid–ask spread. Check volume and open interest for the actual expiry and strike. A liquid futures market does not make every option easy to enter or exit.
A hypothetical spread of $10 per tonne represents $250 across one contract. Crossing that spread adds a cost even if the underlying price has not moved.
Exercise and closing the trade
Ask the broker about exercise instructions, automatic exercise and its cut-off times. If exercise creates futures, the resulting position requires margin and may bring delivery obligations if held long enough. Cash-settled products have different rules.
Selling the option to close can avoid taking the resulting futures position, provided there is a market. Before expiration, compare its sale price with exercise value because exercising may give up remaining time value.
Continue learning
Aluminum Options covers the payoff. What moves aluminum prices? explains the market forces behind an outlook.
References
Official contract information. Examples are hypothetical and exclude fees. Contract information checked 14 September 2026.