Options
Several NYMEX options contracts are available to clients for energy hedging.

1. American Options:
Put and call contracts exercisable and tradable at anytime and settled into futures upon expiry (Three days prior to futures expiry).

2. European Style Options:
These are cash-settled against the underlying futures settlement price at expiry (three days prior to futures expiry). This option can be cleared via NYMEX Clearport or through EOO.

3. Average Price Options (Asian Options):
These options contracts are cash-settled against monthly calendar swaps contracts. These instruments allow for the dampening of market volatility. They are financially settled at expiration.

4. Calendar Spread Options:
An options contract on the price differential between two delivery dates for the same commodity. Allows the holder to hedge against month-to-month price volatility without losing the upside potential of favorable market moves.

5. Crack Spread Options:
A single contract consisting of the simultaneous purchase or sale of crude oil products and petroleum products futures. Allows refiners to lock in the differential between refinery input and output prices, and profit from or protect against changes in that value.

6. Inventory Options:
Available solely for crude and natural gas products, these instruments are traded through an electronic auction in which the options prices are based solely on the relative demand of participants - the more popular the strike, the greater its value.