With open outcry, all market participants are afforded the opportunity to buy or sell at the best available current price. The Exchange is committed to maintaining markets of the highest quality. To help fulfill this self- regulatory mandate, the CSCE employs advanced technological systems to perform a variety of surveillance and compliance procedures. Because options strategies are numerous and can be tailored to meet a wide array of risk profiles, time horizons and cost considerations, hedgers and investors have increasingly realized their vast potential. Buyers Option buyers obtain the right, but not the obligation, to enter the underlying futures market at a predetermined price within a specific period of time.
Buyers pay sellers a premium for their rights.
Because an option holder is under no obligation to enter the futures market, losses are limited to the premium paid. There are no margin calls. If the underlying futures market moves against an options position, the holder can simply let the option for the sugar expire worthless. On the other side, potential gains are unlimited, net of the premium cost. Being able to participate in the market at a known cost with essentially unlimited profit potential has made the purchase of straight call and put options popular among investors.