Multi Commodity Exchange of India (MCX) started trading in zinc options contract yesterday with zinc (5 MT) futures as the underlying asset. It registered a traded volume of 257 lots (One lot = 5 MT) valued at Rs 27.47 crore till 5pm. Currently, the options contracts expiring in the months of July, August and September have been offered for trading.
Each expiry shall have a minimum of fifteen strikes available for call and put options; viz. seven each for In the Money (ITM), seven Out of the Money (OTM) and one At the Money (ATM). The zinc options contract will offer its stakeholders added flexibility to hedge and manage their price exposures in a transparent and regulated trading environment, MCX said. Zinc has seen a surge in demand from the galvanising industry over the last few years.