Today on the blog, we’re introducing options on futures, which should be relatively easy for most tastytraders to digest, especially because most will already be aware of both options and futures as independent securities.
The principle behind options on futures is effectively a combination of the two, much like the name implies.
For most traders, the term “option” likely conjures a traditional equity option, which uses an equity for the underlying. Options on futures are quite similar, except they use futures as the underlying.
