NYMEX SCHEDULES START OF HEATING OIL OPTIONS
The New York Mercantile Exchange said
options on heating oil futures will begin trading June 26.
    This would be the second options contract to trade at the
exchange. NYMEX introduced crude oil options last November.
    "Heating oil options are a logical complement to our
existing energy complex," said NYMEX Chairman William Bradt.
    "From our experience in crude, we fully expect heating oil
options to offer significant new trading opportunities to
current market participants and also draw additional users into
this marketplace," he said.
    Six consecutive trading months in heating oil options will
be introduced on June 26, led by the September 1987 contract,
according to the exchange.
    Strike prices wil be in increments of two cts per gallon
and seven strike prices for puts and for calls will be
available, the exchange said. The middle strike price will
correspond closely to the settlement price of the previous
day's futures close, it said.
    Expiration will be on the second Friday of the month
preceding delivery of the underlying futures contract, it said,
meaning that the September options contract would expire August
14.
    Prices for heating oil options will be quoted in cts per
gallon with a minimum fluctuation of 0.01 cent per gallon,
NYMEX said.
    The options will be based on the underlying futures
contract of 42,000 gallons each. Trading hours will be the same
as heating oil futures, beginning at 0950 EST and ending 1505
EST.
    NYMEX received approval for heating oil options from the
Commodity Futures Trading Commission on September 16, 1986, the
exchange said.
 Reuter
