Where and how are options traded?
Options are traded on the same exchanges as those of the associated futures contracts, that is the corresponding futures contract that may be purchased or sold upon the exercise of the option. There are 11 different commodity exchanges in the U.S. as well as abroad. These commodity exchanges provide a centralized marketplace for buyers and sellers to meet and trade options. The major domestic agricultural crops are traded on the Chicago Board of Trade, the Kansas City Board of Trade, the Minneapolis Grain Exchange, the New York Cotton Exchange, and the Coffee, Sugar and Cocoa Exchange.Options contracts are traded in much the same manner as their associated futures contracts, that is the corresponding futures contract that may be purchased or sold upon the exercise of the option. There are several important factors to remember when trading options. The most important one is that trading a call option is completely separate and distinct from trading a put option. If producers buy or sell a call option, it does not in any way involve a put option. Trading a put does not involve a call option. Calls and puts are separate contracts, not opposite sides of the same transaction.
