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There are many futures options techniques that can be profitable. They can
range from buying and selling options based on volatility to trading ratio
backspreads based on the technical analysis of the underlying futures
market.

One way is to trade spreads that can profit from time decay. You can sell
options which you believe will lose more time value than the options you
buy.

The key is to find techniques that have an advantage when you put the trade
on. What I will discuss are futures options trades that have this advantage.
Trades that have a special quality that you can spot before you enter into it.
You will be able to see what options are “cheaper” or more “expensive”
compared to another option. Not by price or volatility necessarily but by the
price per day. Even though an option might be more expensive than another,
it might be cheaper in terms of volatility or price per day. Keep your eyes
open to things other than the price of the option. Look at the deltas and theta
as well.

Before I explain some techniques to use based on delta and theta, I would
like to define the terms in case you are not familiar with them.

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