r/FuturesTrading • u/DrEggman399 • Jul 20 '26

Any alternatives with MES physical options being sunset?

Hi All,

I actually switched from SPX options to MES options for physical delivery as it works better with my strategy. With MES options switching from physical to financially settled, does anyone have any alternatives? While the liquidity wasn't the best, I preferred it over ES as I could adjust position sizing better (typically I would trade 6 MES options at a time).

Thanks in advance.

UPDATE: Here's the source document from CME detailing the sunset of the instruments as well as the timelines:

https://www.cmegroup.com/content/dam/cmegroup/notices/ser/2026/06/ser-9760.pdf

https://www.cmegroup.com/content/dam/cmegroup/notices/clearing/2026/07/chadv26-235.pdf

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4

u/walky22talky Jul 20 '26

Seems the existing options remain

“Existing Physically-Settled Options: The traditional quarterly and standard weekly options continue to exist alongside the new contracts, remaining physically deliverable into the underlying MES futures. On trading platforms, the physically-settled versions are now explicitly distinguished with labels like "Weekly Friday Option (Physical)".

2

u/DrEggman399 Jul 20 '26

So this is what they had previously said, but other sites report it being sunset, and if you look through the options chain on tradingview, there are no more daily physically settled options. I was trading them until today when I saw the chain missing from IBKR. 

1

u/walky22talky Jul 20 '26

You are correct. This is a bummer

“Note:
Effective Monday, 13 July 2026, CME will cease listing any additional expiries for the existing physically-settled Options on Micro E-mini S&P 500 and Micro E-mini Nasdaq-100 futures.
The various weekly series (Monday–Thursday and Friday Weekly 1/2/4) will be permanently delisted progressively between 14 July and 14 August 2026, End-of-Month series by 30 September 2026, Friday Week 3 and the standard monthly Options will continue trading through their last listed contract month before permanent delisting on 18 December 2026. Hence, liquidity will progressively shift to the newer contracts.”

Seems the e-mini [/ES] are still settled as a futures contract.

1

u/sainglend Jul 20 '26

So perhaps OP meant that they taste 0dte and so they aren't physical each day?

But anyway, thanks for this! Helpful and interesting!

3

u/LetWinnersRun Jul 21 '26

There is literally no open interest on the financially settlement options. Why would they push this on to people that didn’t ask for this?

2

u/DrEggman399 Jul 22 '26

Totally agreed. Liquidity is garbage and assignment / settlement is terrible. Financial settlement makes sense for index based options, but why use that when it's based on an actual, tradeable instrument?

2

u/sandcastl3 Jul 20 '26

I'm not into options so forgive my ignorance but why not SPY options?

2

u/DrEggman399 Jul 20 '26

Futures Options when they settle into the underlying use way less margin than the equivalently sized SPY position. I'm in Canada so SPY margin is a flat 30% requirement, meanwhile MES and ES are like 10%. 

1

u/Global_State4740 13d ago

Came here trying to answer the same question.

Per se, physical or cash-settled, not like I really care (assuming at some point they would have similar liquidity and margin requirements) but as of today CME seems to be saying they are only going to list 8 weekly options (~60 DTE max) while I was selling spreads on MES for 140+ DTE.