What are futures options?
?A futures option, or option on futures, is an option contract in which the underlying is a single futures contract. The buyer of a futures option contract has the right (but not the obligation) to assume a particular futures position at a specified price (the strike price) any time before the option expires. The futures option seller must assume the opposite futures position when the buyer exercises their right.
Here’s some more information on futures options:
The Long & Short of Futures Options 16: All about the Ags
Futures Options Roundtable 9: The Grand Global Marketplace