Greater leverage, which options provide, means that even a small favorable movement in the underlying commodity price can yield a high percentage rate of return on your investment.

Example: You've invested $1000 to buy a three-month crude oil call option with a strike price of $25 and the price of crude has climbed to $30. The option that cost only $1000 can now be sold for $5000. The net profit of $4000 represents a quadrupling of your investment in three months. Stated another way, it took only a 20% increase in the price of crude oil (from $25 to $30) to give you a 400% return on your $1000 investment. That's leverage!