This lesson explains Micro Ether Options, including the contract size and what happens to a purchased call or put. Prices in the examples are hypothetical.

What makes the contract Micro?

CME’s U.S. dollar-denominated Micro Ether futures represent 0.1 ETH. An option on that future uses the same underlying quantity. The standard contract represents 50 ETH. The premium quotation is per ether, so multiply it by the quantity to find the contract premium.

For the broader introduction to calls, puts and premiums, start with Ether Options. A Micro contract is a specific futures product, not an informal name for any small option trade.

The example trade

Assume the underlying starts at 3,000 USD per ETH. One option has a strike of 3,000, a premium of 100 and a multiplier of 0.1. The total premium is USD 10. Prices and premiums are hypothetical; the call and put use equal premiums to make the comparison easy.

The following results are at expiration, before fees. If exercise creates another position, the calculations assume that position is immediately closed at the stated value.

Buying Micro Ether calls

You buy the call because you expect the underlying price to rise. At 3,300 USD per ETH, the right at the strike is worth (3,300 − 3,000) × 0.1 = USD 30. After the premium, your profit is USD 20.

At 3,000 or below, the call expires without intrinsic value and loses its USD 10 premium. Its expiration breakeven is 3,100 USD per ETH. At 3,050, the price has risen but the trade still loses USD 5.

Buying Micro Ether puts

If you expect a fall instead, the put costs USD 10 in this example. At 2,700 USD per ETH, it is worth (3,000 − 2,700) × 0.1 = USD 30. Your profit is USD 20 after the premium.

At 3,000 or above, the put loses its entire premium. Its expiration breakeven is 2,900 USD per ETH. A smaller fall to 2,950 still leaves a loss of USD 5.

Before expiration

You can sell an option to close when a market is available. Its resale value also depends on time remaining and implied volatility, so the expiration breakevens do not determine every earlier trading result.

The purchased option can lose its full premium. Exercise may create a separate position or funding obligation. Selling an uncovered option can produce losses larger than the premium received.

What happens at expiration?

These CME options are European-style and exercise into the specified futures. Monthly delivered futures immediately settle to cash; weekly series can leave an open futures position. Check the selected option and futures dates together.

Micro futures are not a delivery of coins to a wallet. Read Crypto Options Settlement and Risks for the distinction between an option’s expiry value and the obligations of a resulting position.