Crude Oil Futures Options

Quantity and price units

One standard contract covers 1,000 barrels. WTI is quoted in dollars per barrel. A $2 option premium costs $2 × 1,000, or $2,000. A move of $1 per barrel represents $1,000 across the underlying contract.

Identify the underlying month

The option expires separately from its underlying future. Check both dates: an option labelled with a particular month may stop trading before that month begins. Weekly and short-dated series can reference a later futures contract.

A continuous price chart stitches together different futures months. Its latest price is useful context, but you need the exact underlying month to calculate an option’s intrinsic value.

Exercise creates a position

For a futures-deliverable call, exercise creates a long futures position at the strike. For a put, it creates a short futures position. Keeping that future introduces further price risk and margin requirements.

WTI futures delivery is tied to Cushing, Oklahoma. An option exercise is not an immediate delivery of oil, but keeping the resulting future into delivery can create physical obligations. Financially settled WTI option variants have different terms.

Selling before exercise

The option may have remaining time value before expiration. Selling it to close can preserve that value, while exercise uses only the intrinsic value. Compare the available prices, spreads and fees.

Your broker can impose instruction deadlines earlier than exchange deadlines and may close positions before delivery. Confirm its policy and the margin needed for any resulting future before holding an option through expiration.

Continue learning

Where to trade covers broker access and costs. What moves prices? covers the underlying market.

References

Official contract information. Examples are hypothetical and exclude fees. Contract information checked 14 September 2026.