CME Group Options on Futures Guide

The Basic Fundamentals, Strategy and Vocabulary of our Options Markets

CME Group's vast and liquid family of option contracts on futures can help you diversify your portfolio while helping to mitigate your downside risk. This introductory guide will walk you through the basic fundamentals, strategy and vocabulary of our options markets, providing a solid base of knowledge that will make you well-prepared to tackle these opportunities.

Options are available across all major asset classes, including on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. Our introductory guide includes a listing of the most active options contracts traded on futures at CME Group. This listing is not exhaustive of all options products, but is a good representation of the types of options that CME Group offers.

In addition, our Options on Futures Guide covers everything you need to understand and utilize these contracts:

  • Vocabulary – The basic vocabulary of options on futures
  • Pricing Fundamentals - How options premiums (or prices) are determined
  • Arithmetic – The basic calculations you need to understand; complex mathematics are not required
  • Important Concepts – Concise definitions of In-the-money, At-the-money, Out-of-the-money, Time Decay Value, Delta and Performance Bond
  • Basic Strategies – Examples of the dozens of options strategies possible given the flexibility of options
  • Review Questions – Questions to test your understanding of options

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Futures & Options Trading

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through the CME Globex electronic trading platform and trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort.

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CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX, and COMEX.