A put or call option on a futures contract for a commodity such as oil, copper, or grain. Commodity options are often purchased by suppliers who want to hedge against price decreases, by investors who expect price increases and want to be able to re-sell the option to commodity purchasers, or by other parties anticipating commodity price movements.
Related information about commodity option:
- Commodity Options
The underlying commodity for the commodity option is not the commodity itself, but rather a futures contract for that commodity. For example, a November ...
- Commodity option
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Option credit spreads involve selling an option that is nearer to the money and buying an option that is further out of the money. The simultaneous opening of ...
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May 2, 2012 ... Commodity Option Traders Are a Different Breed. Remember, it comes down to the perception of risk. Why is risk bi-directional? Because the ...
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