Commodity options make it possible to realize a potentially substantial profit, in a short period of time, with a limited-risk investment. Under no circumstance, can the loss exceed the cost of purchasing the option including transaction costs. Other advantages include:

• The leverage inherent in options.
• The liquidity provided by established competitive option markets.
• The flexibility to respond rapidly to market opportunities.
• The ability to follow the value of your investment on a day-to-day basis.
• They staying power to weather temporary price setbacks without incurring additional risk or cost.
• Freedom from the margin calls that many other leveraged investments are subject to.
• Strict federal and industry regulation to which options trading is subject.
• The ability to buy and sell quickly due to market liquidity.
• There is no guarantee that any of these advantages will result in profits.