Options provide an excellent way to take advantage of upward and downward movement by purchasing either calls or puts. When a speculator feels that the market is going into a bull market, he or she can take advantage of the higher prices by purchasing a call option, as call option prices increase when the underlying futures contract price increase. When speculators are bearish, the purchase of put option is advisable, as put option prices increase when the price of the underlying futures contract decreases.

In this section you will learn the basics of purchasing options and option spreads.

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