What is my maximum risk if I buy a commodity option?
What is the nature and amount of downside risk? In the case of commodity options, your maximum
risk that could lose the money that you invested purchasing the options, plus brokerage fees and transaction costs. Regardless
of what happens in the market when buying options on futures your risk is limited to your entire investment, yet your profit
potential is unlimited. On the contrary, if you sell or grant an option your risk may be greater.
Commodity futures are generally considered more risky than commodity options.