Options transactions (Call, Put) The right to purchase an underlying asset (commodity) at a fixed strike price on a specified future date. To conclude an option transaction, the buyer must pay an option premium, which is due in any case.

A distinction is made between call options and put options. With a call option, the buyer benefits from rising market prices of the underlying commodity. Once a strike price has been agreed with the seller of the call option, the strike price is compared with the market price on the expiry date. If the market price is higher than the strike price, the buyer will exercise the right to buy the underlying asset at the strike price, whereby the difference, less the option premium, would represent his profit. The buyer of the option is said to be In The Money (ITM). If the market price is lower than the strike price (the option is out of the money (OTM)), he does not have to honour the option. The option premium must always be paid when the option is concluded.

The put option is the exact opposite of the call option. It allows the buyer to sell an underlying asset (commodity) at a strike price. Accordingly, the buyer is ITM if the strike price is higher than the market price.