NODAL EXCHANGE CONTRACT SPECIFICATION

NYISO WEST Calendar Year Day Ahead On-Peak Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve NYISO WEST Monthly 

Day Ahead On-Peak Power Futures (DEU)

Option Style European

Underlying Contract LMI

Code For Underlying 

Contract(s) LMI

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January – December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange’s discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

PJM WESTERN HUB Calendar Year Real Time On-Peak Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve PJM WESTERN HUB 

Monthly Real Time On-Peak Power Futures (FKE)

Option Style European

Underlying Contract LMJ

Code For Underlying 

Contract(s) LMJ

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January – December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange’s discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

PJM WESTERN HUB Calendar Year Real Time off-Peak Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve PJM WESTERN HUB 

Monthly Real Time Off-Peak Power Futures (FKF)

Option Style European

Underlying Contract LMK

Code For Underlying 

Contract(s) LMK

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January – December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange’s discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

PJM AEP-DAYTON HUB Calendar Year Real Time On-Peak Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve PJM AEP-DAYTON 

Monthly Real Time On-Peak Power Futures (FKA)

Option Style European

Underlying Contract LQQ

Code For Underlying 

Contract(s) LQQ

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January – December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange’s discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

PJM AEP-DAYTON HUB Calendar Year Day Ahead On-Peak Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve PJM AEP-DAYTON 

Monthly Day Ahead On-Peak Power Futures (DLW)

Option Style European

Underlying Contract LQR

Code For Underlying 

Contract(s) LQR

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January – December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange’s discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

ISONE .H.INTERNAL HUB Calendar Year Day Ahead On-Peak Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve ISONE .H.INTERNAL

HUB Monthly Day Ahead On-Peak Power Futures (AAA)

Option Style European

Underlying Contract LVN

Code For Underlying 

Contract(s) LVN

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day's Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January - December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange's discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

ERCOT HB NORTH Calendar Year Real Time On-Peak Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve ERCOT HB NORTH 

Monthly Real Time On-Peak Power Futures (FOK)

Option Style European

Underlying Contract LVU

Code For Underlying 

Contract(s) LVU

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day's Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January to December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange's discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

ERCOT HB NORTH Calendar Year Real Time Off-Peak Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve ERCOT HB NORTH 

Monthly Real Time Off-Peak Power Futures (FOL)

Option Style European

Underlying Contract LVV

Code For Underlying 

Contract(s) LVV

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day's Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January to December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange's discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

ERCOT HB NORTH Calendar Year Real Time 2x16 Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve ERCOT HB NORTH 

Monthly Real Time 2x16 Power Futures (GBC)

Option Style European

Underlying Contract LVW

Code For Underlying 

Contract(s) LVW

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day's Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January to December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange's discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars
NODAL EXCHANGE CONTRACT SPECIFICATION

ERCOT HB NORTH Calendar Year Real Time 7x8 Power Option

ITEM SPECIFICATION

Contract Description A calendar year Option on the corresponding period of twelve ERCOT HB NORTH 

Monthly Real Time 7x8 Power Futures (GBD)

Option Style European

Underlying Contract LVX

Code For Underlying 

Contract(s) LVX

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day's Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Min Price Fluctuation $0.0001 per MWh

First Trading Day The date when the current expiring calendar year Option is no longer traded. The 

launch day is up to 4 years before the Option period.

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January to December yearly Option contract periods

Premium The premium on the Option is paid from the buyer to the seller on the next 

settlement cycle following the Transaction.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted.

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically.

Exercise Day is the Last Trading Day.Exercise of In-the-Money Options is automatic 

on the Last Trading Day unless the Exchange is notified by 4:30 pm on the Last 

Trading Day (1) to allow the In-the-Money Options to expire without exercise or (2) 

to exercise expiring Out-of-the-Money Options. When exercised against, Option 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

sellers will be selected on a pro-rata basis or at the Exchange's discretion.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars