Amid geopolitical tensions, exchanges expand the number of strike prices in crude oil options contracts

Exchanges expand the number of strike prices in crude oil options amid geopolitical tensions

• MCX, NSE widen crude oil options strikes amid tensions
• MCX now offers 75 ITM and 75 OTM strikes for crude oil options
• NSE raised minimum strikes to 50 ITM and 50 OTM for WTI contracts

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MCX and NSE have expanded the number of strike prices available in crude oil options contracts amid heightened geopolitical tensions. First MCX increased the number of strike prices available in its crude oil options contracts, followed by which NSE also issued a circular regarding the same.

MCX has revised the “Number of Strikes” parameter for Crude Oil Options on Futures (100 barrels) and Crude Oil Mini Options on Futures (10 barrels) from March 2.

Earlier MCX contracts had 25 in-the-money (ITM) strikes, 25 out-of-the-money (OTM) strikes and one near-the-money strike (25-1-25). Which has now been expanded to 75 ITM strikes, 75 OTM strikes and one near-the-money strike (75-1-75), widening the available price range for traders. MCX said modification will apply to both running contracts and those yet to be launched.

The strike price interval will continue to be Rs 50 for both standard (100 barrels) and mini (10 barrels) crude oil options contracts.

NSE has also revised the minimum number of strikes for its WTI Crude Oil Options on Futures contracts, effective today. In a circular dated March 2, 2026, the exchange said the ‘Minimum Number of Strikes’ parameter for the CRUDEOIL Options on Futures (OPTFUT) contract has been increased to ensure sufficient availability of strike prices for market participants.

Under the revised framework, the minimum strikes have been expanded from 25 in-the-money (ITM), 25 out-of-the-money (OTM) and one near-the-money strike (51 call options and 51 put options) to 50 ITM, 50 OTM and one near-the-money strike — translating to 101 call option (CE) and 101 put option (PE) strikes. NSE said the revised strike structure will apply to contracts expiring in March 2026 and onwards.

Exchanges said the decision was taken to ensure that sufficient strikes are available and that an appropriate price range is covered for market participants. Exchanges cited ongoing geopolitical tensions and extreme exigencies arising from war situations as the reason for the move. Exchanges said they may further expand the strike price if required.

On 28 February, Israel and the United States launched a coordinated joint attack on various sites in Iran, sparking a major conflict. Later Iran announced the closure of Strait Of Hormuz, which accounts for approximately one-fifth of the global crude oil flow route, leading to spike in crude oil prices.