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"Options 101" is a PDF of a collection of strategies and a guide to trading futures options. The educational material contained is of opinion only and does not guarantee profit.
The article opens with an overview of options on futures trading strategies split into bullish market strategies, bearish market strategies, neutral market strategies, and special market strategies. It then describes who actually writes and sells the futures options that traders buy, and explains the reasons they do so. Finally, there is a section on futures options buying & spreads which describes the situations in which we believe there may be opportunity in buying futures options, and some possible strategies in those situations.
This link will open the futures options report as a PDF: Futures Options 101
Trading commodity futures and options involves substantial risk of loss. The recommendations contained are of opinion only and do not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. This is not a solicitation of any order to buy or sell, but a current futures market view. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!