Options can provide investors with greater leverage. Especially out-of-the-money options with short expiration dates. Compared with futures margin, you can control the same number of contracts with less premium. Let's take at-the-money options as an example and compare them with futures.

Assume: the strong wheat futures price is 1,900 yuan/ton, the margin ratio is 5% or 95 yuan; the strong wheat option execution price is 1,900 yuan/ton, the volatility is 15%, and the annual interest rate is 1.98%.

The ratio of call option premium at expiration time (yuan/ton) to futures margin

1 month 34 30%

2 months 49 45%

3 months 61 60%

The leverage of options can help investors obtain more income with limited funds. If the market changes adversely, investors may lose more of their premiums. Therefore, investors should be aware that whether it is futures or options, leverage is a double-edged sword.