Buying options make it possible to realize a potentially substantial profit - often in a short period of time - with a relatively small investment and with a known and limited risk.  Under no circumstances can the loss exceed the cost of purchasing the option, unless exercised into a futures contract.  Other advantages include:

· The greater leverage inherent in options.
· The liquidity provided by established competitive option markets.
· Investment diversification.
· The flexibility to respond rapidly to market opportunities.
· The ability to follow the value of your investment on a day-to-day basis.
· The staying power to weather temporary price setbacks without incurring additional risk or costs.
· Freedom from the margin calls that many other investments are subject to.
· Strict federal and industry regulation.
· The opportunity to realize profits during periods of declining prices as well as during periods of rising prices.