BSE widened the strike price range for WTI Crude Oil options and cut transaction charges to improve trading flexibility. These changes, effective November 27, also bring forward the options expiry and waive authorised person charges. The exchange hopes these updates will encourage more participation in its commodity derivatives trading segment.
Revised contract specifications, effective November 27, also bring forward options expiry and waive authorised person charges
BSE has widened the strike price range for its WTI Crude Oil options contracts and reduced transaction charges to improve trading flexibility and encourage greater participation in its commodity derivatives segment.
The revised contract specifications, effective November 27 for December 2026 and subsequent monthly contracts, will expand the available options strikes from the existing 25 in-the-money (ITM) and 25 out-of-the-money (OTM) strikes to 50 on either side of the at-the-money (ATM) strike.
The wider strike range is expected to give traders and hedgers more flexibility in executing strategies and managing exposure to crude oil price movements.
BSE has also revised the expiry structure for options on WTI Crude Oil futures. These contracts will now expire five business days before the expiry of the underlying futures contract, compared with the existing two business days. The change is intended to provide participants with more time to manage positions and plan rollovers.
The exchange has kept the expiry cycle for futures contracts unchanged. For the December 2026 series, the options contract will expire on December 11, while the corresponding futures contract will expire on December 18.
BSE will also lower transaction charges to ₹2 per crore for futures and ₹10 per crore for options. Authorised Person charges on the contract will be waived.
In another change, the existing contract symbol WTICRUDE will be renamed CRUDEOIL for both futures and options on futures contracts.
The WTI Crude Oil contract is linked to the West Texas Intermediate benchmark traded on the Intercontinental Exchange and is cash-settled, allowing participants to take exposure to international crude oil prices without physical delivery.
BSE said the changes were aimed at improving trading flexibility, strengthening risk management capabilities and reducing transaction costs for market participants.