Options in which the asset underlying the futures is a commodity, such as oil, gold, wheat, or soybeans, are also widely traded. There are exchange-traded as well as over-the-counter versions. Over-the-counter options on oil are widely used.
Our focus in this blog is on financial instruments so we will not spend any time on commodity options, but readers should be aware of the existence and use of these instruments by companies whose business involves the buying and selling of these commodities.