Futures options offer more leverage and, therefore, can deliver greater potential rewards (in addition to greater risk) than stock options. The smaller the margin in relation to the cash value of the futures contract or option, the higher the leverage.
There is a lower margin requirement for futures options (that is, a higher return on investment). I don't buy options, I sell premium to add an income stream to my portfolio. Margins posted to hold short stock options can be 10 to 20 times the premium collected for the option. With the futures options, however, options can be sold with margin requirements for as little as one to one-and-a-half times the premium collected.
If you want to buy options, take a look at option vertical spreads to provide great potential returns as well as risk management against a wasting asset.
In commodities, it is most often old-fashioned supply and demand fundamentals that ultimately dictate price, not the actions of a badly behaving CEO.
If you buy an option on a futures contract, does that lead to speculation that is more leveraged than only a futures contract?
