20. How much should I know about the underlying commodity in order to consider investing in options?

The reason for buying an option is because you have an opinion about the probable price movement of a particular commodity.  The opinion can be derived from your own knowledge or, as is the case with most investors, by dealing with a brokerage firm in whose research and analytical abilities you have confidence.
 
 

877-4LEVERAGE (877-453-8372) · 305-257-3337
Fax: 305-258-1867
P.O. Box 4479 · Princeton, Florida · 33092
www.fidelityglobal.com
 

(*Please note: futures and options trading involves risk of loss and may not be suitable for everyone)

1 1