Getting started with Micro
Henry Hub Natural Gas options
1. Know the basics
Before you start trading, get anunderstanding of how options work in
our All About Options curriculum,
specifically Option Hedging with Micro
Henry Hub Natural Gas futures.
2. Find a broker and open an accountIn order to trade options, you must find aregistered broker who will maintain youraccount and guarantee your trades.
3. Fund your accountAfter an account is established, it must
be enabled to trade options. Brokers may
require a minimum deposit before youcan trade.
4. Select a trading platform
Brokers may offer different trading
platforms with varying cost structures tomeet your needs most efficiently.
5. Understand the underlying
Options derive their value from anunderlying futures contract. It is important tounderstand the Micro Henry Hub NaturalGas futures that underlie these options.
6. Be a knowledgeable trader
Inform your trading strategy with CMEGroup’s innovative tools, such as theStrategy Simulator, Options Calculator,and Volatility Term Structure.

7. Know the option listings and expiration
All options have an expiration date.
A variety of option listings are available,
allowing greater flexibility for your trading
strategies. Even if you don’t hold yourposition until expiration, you need to beaware of how expiration is handled.
8. Select the option strike priceMultiple strike prices across different
expiration dates are offered, providing
more trading opportunities. Strike intervals
vary based on the underlying futures priceand time to expiration. Learn more about
strike prices.
9. Understand daily profit and loss
The process of mark-to-market (MTM) is
used to determine daily options profit andloss based on the settlement price of Micro
Henry Hub Natural Gas options.
10. Track trades, positions, andmark-to-markets
Your futures broker will provide you withtrade confirmations and statements thatshow all transactions, charges/credits, andyour account balance.

Find out more at
cmegroup.com/micro-henryhub

CONTRACTSPECIFICATIONSHENRY HUB
NATURAL GASOPTIONSHENRY HUB
NATURAL GASFRIDAY WEEKLYOPTIONSNEW MICRO HENRYHUB NATURAL GASOPTIONSNEW MICRO HENRYHUB NATURAL GASFRIDAY WEEKLYOPTIONSCONTRACT SIZE

10,000 MMBtu

10,000 MMBtu

1,000 MMBtu

1,000 MMBtu

MINIMUM STRIKE
INCREMENT$0.01 per MMBtu$0.05 per MMBtu$0.025 per MMBtu$0.025 per MMBtu

MINIMUM PRICE TICK
INCREMENT$0.001 per MMBtu$0.001 per MMBtu$0.001 per MMBtu$0.001 per MMBtu

DOLLAR VALUE OF
A TICK INCREMENT$10 per contract$10 per contract$1 per contract$1 per contract

PRODUCT CODE

LN

LN1-5

MNO

MN1-5

UNDERLYING FUTURE

NGNG

MNG

MNG

LISTED CONTRACTS

Monthly contracts
listed for the current
year and the next
12 calendar years.

Next four Fridays

Monthly contracts
listed for 24
consecutive months

Next two Fridays

SETTLEMENT TYPE

Financial

Financial

Financial

Financial

EXPIRATION

MonthlyFriday

MonthlyFriday

TERMINATION OF
TRADING

Trading terminates on
the 4th last business
day of the monthprior to the contract
month (1 business day
prior to the expirationof the underlying
futures corresponding
contract month).

FridayTrading terminates on
the 6th last business
day of the monthprior to the contract
month (2 business day
prior to the expirationof the underlying
futures corresponding
contract month).

FridayEXCERCISE STYLEEUROPEAN

OPTIONS PREMIUMSTYLE

EQUITY

TRADING SCHEDULECME Globex: Sunday – Friday: 5:00 p.m. to 4:00 p.m. Central Time (CT)
Monday – Friday: 60-minute daily trading halt beginning at 4:00 p.m. CT

LISTING EXCHANGE

NYMEX

cmegroup.com
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Contract Participants (ECPs) within the meaning of Section 1a(18) of the Commodity Exchange Act. Futures and swaps each are leveraged investments and, because only apercentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for either a futures or swaps position. Therefore, traders should
only use funds that they can afford to lose without affecting their lifestyles and only a portion of those funds should be devoted to any one trade because traders cannot expect toprofit on every trade.
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