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Commodity Option: The right (but not the obligation) to a specified commodity futures contract position at a stated price during a designated time period. An option can either be the right to a short futures position (a put) or the right to a long futures position (a call).

Contract Month: The calendar month when a futures contract matures (also called the delivery month). The contract month establishes a time frame for potential delivery of the commodity (which influences the value of the contract) and determines the last trading day of the futures contract.

Exercising an Option: The process used by the holder of an option to convert the right to a specified futures position at a stated price into an actual futures position. Expiration Date: The date when the option holder loses the right to exercise the option. The expiration date for commodity options is determined by the contract month of the underlying futures contract.

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