Many books have been written about options on futures, unfortunately we believe that many of them are either contradictory or just a meandering compilation of exchange-generated research and material. In our opinion, much of the available literature leaves you even more confused than you were before you opened the book. With this book we hope that we have taken a step toward changing what has been the norm in this genre. The biggest mistake that some authors make is to apply stock option theory to options on futures. It is a misguided perception to believe that an “option is an option.” Although they are spelled the same, they aren’t comparable. The nature of the underlying vehicle differs greatly, causing the options to take on completely different characteristics. After all, everybody agrees that trading stocks is different from trading futures, so why would anybody assume that trading options on stocks is synonymous with trading options on futures? It is our observation that authors of such material may simply be looking to capitalize on book and course sales through the recycling of stock option theory.