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MCX Bulldex Options: Monthly Contracts Launched

27 October 20251 min read
ECONOMYMCX BulldexOptions: MonthlyContractsLaunched27 October 2025safalsetu.com

Why in the news

After one of the strongest gold and silver buying phases in recent years, MCX widened its bullion offering with options, just as prices were correcting.

Key facts

  • Product: monthly options on Bulldex.
  • Underlying: an index built on gold and silver futures prices.
  • Initial expiries: November, December, January 2026.
  • Earlier step: Bulldex futures launched in August 2020.
  • Standing: India tops the world in options contracts traded (FIA).
  • Purpose: more hedging flexibility and participation.

Options basics

An option gives the holder a right, not an obligation, to buy or sell an underlying at a fixed strike price on or before expiry.

TermMeaning
Call (CE)Right to buy at a fixed price; bought when prices are expected to rise
Put (PE)Right to sell at a fixed price; bought when prices are expected to fall
Strike pricePre-decided buy or sell price
ExpiryContract end date; Nifty and Bank Nifty options have weekly and monthly expiries
PremiumAmount the buyer pays the seller (writer)

Exam angle

  • Exchange: MCX; index: Bulldex.
  • Contract type: monthly options.

Test yourself

1. MCX launched monthly options on which bullion index?

The options are on the bullion index Bulldex.

2. Bulldex is based on futures prices of which metals?

Bulldex tracks gold and silver futures prices.

3. In options trading, what is the price paid by the buyer to the seller called?

The premium is what the buyer pays the writer.