An option on a futures contract is a call or put option that gives the buyer the right, but not the obligation, to buy or sell a specific futures contract at a strike price on or before the option’s expiration date, with the seller of the option obliged to buy or sell the futures contract if the buyer so desires by exercising that option.
Options on futures can offer added liquidity and risk management across several asset classes, with a broad array of maturities and strikes.
