Selling bearish or bullish is the most important option, whether the seller holds a long futures contract or a short futures contract;

1, if the bulls are call options and the bears are put options;

2. If the buyer of the option wants to buy xx option, the seller wants to sell xx option.

Selling a call option means that the seller gets a premium. If the buyer of the call option executes the contract, the seller must sell a certain quantity of a certain commodity to the buyer of the option at a specific price. Call option sellers usually expect the market price to fall.

If the hedger expects the prices of related commodities to fall slightly, but not to rise greatly, he can earn a premium income by selling call options, thus playing a role in hedging. Of course, if the commodity price rises sharply and the futures price rises above the strike price of the call option, the hedger may face the risk that the option buyer will demand performance, which will bring great losses to traders, so it is necessary to be cautious in this hedging operation.

Selling a put option means that the seller gets royalties. If the buyer of the put option executes the contract, the seller must buy a certain number of specific commodities from the buyer of the option at a specific price. When an investor expects the market price of a commodity to rise, he usually sells put options.

If the trader expects the price of related commodities or assets to rise slightly, but not to fall sharply, he can get commission income by selling put options, which can avoid the risk of rising prices of spot commodities or assets, thus playing a role in maintaining value. However, it should be noted that even if the forecast is correct, the income of option trading is limited, and the highest is only a premium; But if the prediction is wrong. When the price of commodities or assets falls sharply and the futures price falls below the exercise price of put options, the hedger may face the risk that the option buyer will demand performance, and the option transaction will bring greater losses, offset the gains brought by the price drop to the spot market, and cannot achieve the hedging effect. Therefore, when using put options for hedging, we must be cautious.