Futures options are transactions of buying and selling futures contract rights, including commodity futures options and financial futures options. Generally speaking, options usually refer to spot options and futures options refer to "options for futures contracts". A futures option contract refers to a futures contract that buys or sells a certain number of specific commodities or assets at an agreed price on or before the expiration date of the option.

Futures options are based on commodity futures contracts. When the futures option contract is implemented, it is not the commodity represented by the futures contract, but the futures contract itself. If the futures call option is exercised, the holder will get the long position of the futures contract plus the cash amount, which is equal to the current futures settlement price minus the exercise price.

Futures option is another futures revolution in 1980s after financial futures in 1970s. 1982 10, the Chicago Board of Trade successfully applied the option trading method to the trading of government long-term treasury bonds futures contracts for the first time, and futures options came into being. Compared with commodity futures, option trading provides futures traders with tools to avoid risks. At present, most futures trading products in the international futures market have launched option trading.

The right to buy or sell a certain number of futures contracts at a certain price at a certain time in the future, futures option, is an investment variety of futures. Option is a way to judge the future market, and your loss is limited.

For example, if you think the current market will go up, you can buy a call option. The conclusion is that if the market goes up, your income is infinite; If the market falls, your loss is only your stock. Similarly, when the market is bearish, you buy a put option and come to the conclusion that if the market falls, the biggest gain is the exercise price MINUS the equity premium; When the market goes up, only the rights and interests are lost. If the market is considered to be volatile, you can sell options, your highest return is equity, and your biggest loss is infinite.

Futures options can be simply divided into call futures options and put futures options. Call futures options are buying futures options, and put futures options are selling futures options.

If a futures put option is exercised, the holder will get the short position of the futures contract plus a sum of cash, which is equal to the exercise price minus the current price of the futures. In view of this, futures options rarely deliver futures contracts when they are executed, but only the settlement amount generated by the difference between futures contracts and the agreed price of options.