At any given time, the range of strike prices quoted will cover values in the money, at the money, and out of the money. Thus, a hedger or speculator has the option of purchasing an option at any of these three levels. Typically, options in the money will have the highest premium, followed by options at the money, and options out of the money will have the lowest premiums. There are two components which make up the value of the option, intrinsic and time value. Both of these values are implicit values not observed, but theoretically present.
Intrinsic value is the value of the option relative to the underlying futures price.
Typically, the change in intrinsic value of the option is determined by the change in futures price. However, the change in option price is typically not as large for out of the and at the money options. Additionally, there is a time component to the value of an option. The time value reflects the time between the option premium quote and contract expiration. Typically, the larger the time period the greater the implicit time value of the option.