Start Trading Options: Trade Options Profitably by Kevin M. Kraus is a self-teaching guide to understanding futures/commodity options. I rate this book number one presently in the futures/commodity options for beginners category because of its simple layout and explanation of only the essential points of futures/commodity options. There are many books helping beginners understand stock options, but few books at the beginner’s level explain futures/commodity options.
From cocoa to crude oil, Kraus uses a number of different commodities to clearly illustrate how to understand commodity options and their trading strategies. Kraus dedicates a chapter to commodity options spread strategies. I think that working with different commodity contract sizing and pricing helps a trader to get a hands-on familiarity with calculating commodity options’ prices.
This book will make the job of understanding futures/commodity options easy. But more intensive, advanced study is needed before you plunge prematurely into trading options and risk losing your shirt and perhaps your pants as well.