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23 Mar 2017

Eurex

Any questions on our Weekly Options on Euro-Bund Futures? We have the answers.

More precision in hedging your exposure means less cost for you. Don't miss our Weekly Options on Euro-Bund Futures which complement our standard Euro-Bund Options (OGBL) offering.

What are Weekly Options on Euro-Bund Futures?

Weekly Options are options with an expiry on every Friday that is not already a monthly Euro-Bund Option expiry. Like regular monthly Eurex Euro-Bund Options, Weekly Options are physically settled into the next corresponding Euro-Bund Futures maturity.

Which weekly expiries will be available?

The first five weekly expiries will be available. The third or fourth Friday of each month will remain expiration day for standard options series (OGBL), so no Weekly Option series will be available on this expiry date. Since the go-live of NextGen ETD at Eurex in Q1/2023, Weekly Bunds are fully integrated into the contract series of Bund Options. Eurex Exchange is using the contract codes OGBL W1-5 to denote the first, second, third, fourth and fifth weekly expiries of the calendar month. Also, the expiry date of each monthly or weekly contract is detailed in the “ContractDate” field of the market overview in Bund Options. 

What happens if Friday is not an exchange day?

If a Friday is not an exchange day, then the exchange day preceding the Friday shall be the last trading day. If the preceding trading day is not within the same calendar month as the Friday of the expiration week, the last trading day shall be the trading day immediately succeeding the Friday of the expiration week.

What time do the Weekly Options expire?

Weekly Options on Euro-Bund Futures are American-style: An option can be exercised until the end of the Post-trading Full Period (18:00 CET on the last trading day) on any exchange day during the lifetime of the option.

Key benefits:

  • Weekly options will offer more targeted opportunities to trade specific high impact events such as key economic announcements.
  • Provide users with increased flexibility in managing option positions.
  • Traders can engage in option strategies (e.g. diagonal spreads) by pairing weekly and monthly Euro-Bund options.
  • Reduced margin requirements through cross margining with regular options and futures positions.

Mistrades in Weekly Bund Options

A distinction between weekly and monthly expirations will be done following NextGen ETD with the contract names for each expiration. The mistrade ranges in weekly and monthly expirations will continue to differ according to the current parameters. These are published on the Eurex website under the following path:

Markets > Interest Rates > Fixed Income Options > OGBL, Tab Specifications => Mistrade Ranges

Selected standardized and non-standardized options strategies as well as option volatility strategies may include varying expirations, for example options calendar spreads. The mistrade ranges for combinations featuring leg instruments with weekly and monthly expirations will be determined based on the mistrade range of the leg instrument with a weekly expiration.

Vassily Pascalis
Fixed Income Sales Europe

T +44-20-78 62-72 11

vassily.pascalis@eurex.com


Market Status

XEUR

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