Page 20 - Futures Money Machine-Study Session #5
P. 20
Beyond The Basics
Options on Futures…
Basic concepts such as delta, time value and strike price apply the same way to
futures options as to stock options, except for slight variations in product
specifications.
As for other options on futures markets, you'll need to get familiar with their
product specifications - such as trading units and tick sizes - before doing any
trading.
It is important to remember that the underlying of a futures options is the
futures contract, not the commodity. Hence, the option price move along with
the futures price and not the commodity price.
