A Commodity Option gives a buyer the right to
buy or sell a certain commodity at an agreed price (also called the
strike price) and a set time in the future or before.
The buyer pays a premium for this to the seller or to the broker. The
buyer is not obligated to exercise this contract however if they do not
choose to follow then through then they can leave it and allow the
contract to expire.
By looking at the past and using technical analysis including historical
charts and data the buyer can start to build a better picture and
projection of the future.
Metals- Silver, Gold, Platinum
Energies- Oil, Ethanol, Gas
Grains- Wheat, Corn, Soybeans
Softs-Sugar, Cotton, Lumber