Description

NSE is doubling the minimum number of strikes for WTI Crude Oil Options on Futures (CRUDEOIL OPTFUT) from 51 to 101 CE and PE, effective March 03, 2026, to ensure broader price range coverage amid rising geopolitical tensions.

Summary

NSE’s Commodity Derivatives department is modifying the minimum number of strikes for WTI Crude Oil Options on Futures (symbol: CRUDEOIL, instrument type: OPTFUT). The revision doubles the available strikes from 51 to 101 on both the call (CE) and put (PE) sides, effective March 03, 2026, for contracts expiring in March 2026 and beyond.

Key Points

  • The minimum number of In-the-money strikes increases from 25 to 50.
  • The minimum number of Out-of-the-money strikes increases from 25 to 50.
  • The Near-the-money strike remains at 1, resulting in a total of 101 CE and 101 PE strikes (up from 51 each).
  • NSE retains discretion to introduce additional strikes beyond the revised minimum if required.
  • The change is driven by the need to cover a wider price range for Crude Oil Options, citing rising geopolitical tensions.

Regulatory Changes

The ‘Minimum Number of Strikes’ parameter for CRUDEOIL Options on Futures contracts (OPTFUT) is being revised under circular ref. 12/2026 (Download Ref No: NSE/COM/73091). The existing configuration of 25 ITM + 25 OTM + 1 NTM (51 CE, 51 PE) is replaced with 50 ITM + 50 OTM + 1 NTM (101 CE, 101 PE).

Compliance Requirements

  • All NSE members trading in the Commodity Derivatives segment must take note of the revised strike structure.
  • No direct compliance action is required from members; the exchange will implement the change operationally.
  • Members should update their trading systems, risk models, and option chain displays to accommodate the expanded strike range.

Important Dates

  • Circular Date: March 02, 2026
  • Effective Date: March 03, 2026 (applicable to contracts expiring in March 2026 and onwards)

Impact Assessment

The doubling of available strikes provides market participants with a significantly wider range of hedging and speculative positions in WTI Crude Oil Options. This is particularly relevant given heightened crude oil price volatility associated with geopolitical tensions. Market makers will need to quote across a broader strike range, increasing liquidity provision obligations. Traders using options strategies (spreads, straddles, strangles) will have more granular strike selection. The change may increase open interest distribution across strikes and improve price discovery at extreme levels.

Impact Justification

Operational change expanding strike availability for WTI Crude Oil Options on Futures; affects commodity derivatives traders and market makers but does not alter underlying contract structure or compliance obligations.