Commodity > Commodity Option
Commodity Option, Energy
Trade Type: CommodityOption
Trade Components: Option Data
A European Commodity Option gives the buyer the right, but not the obligation, to buy or sell a set amount of a commodity, at a predetermined price (the strike), at the end of the contract. For this right the option buyer pays a premium to the seller. Settlement can be either cash or physical delivery.
Only exercise style European is supported for commodity options.
This example is a bought (long position) commodity option that gives the right to buy (call option) WTI oil.
Commodity Option, Metals
Trade Type: CommodityOption
Trade Components: Option Data
A European Commodity Option gives the buyer the right, but not the obligation, to buy or sell a set amount of a commodity, at a predetermined price (the strike), at the end of the contract. For this right the option buyer pays a premium to the seller. Settlement can be either cash or physical delivery.
Only exercise style European is supported for commodity options.
This example is a sold (short position) commodity option that gives the counterparty the right to sell (put option) gold.