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Options trader vs commodity trader

The differences between options traders and commodity traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, an options trader has an average salary of $110,139, which is higher than the $93,220 average annual salary of a commodity trader.

The top three skills for an options trader include FX, stock options and equities. The most important skills for a commodity trader are commodities, commodity trading, and logistics.

Options trader vs commodity trader overview

Options TraderCommodity Trader
Yearly salary$110,139$93,220
Hourly rate$52.95$44.82
Growth rate10%10%
Number of jobs1,43310,906
Job satisfaction--
Most common degreeBachelor's Degree, 82%Bachelor's Degree, 77%
Average age4343
Years of experience--

What does an options trader do?

Options traders are financial experts who work for large investment banks or private hedge fund companies to buy and sell stock options as well as manage complex capital investments for clients. These traders are required to create options contracts and develop forecasting models so that they can determine the optimal price to buy an option to maximize profit and minimize risk. They must assist head traders with client services to allow more trading revenue production. Options traders must also employ risk management strategies to minimize portfolio risk and increase their volume in trading.

What does a commodity trader do?

Commodity traders can be businesses or individuals that mainly focus on investing in oils, gold, or agricultural products. They keep up with the news on commodities to ensure that they know the different forces that determine their prices and use their technical analysis skills to decide to enter or exit trading decisions based on the current trend. These traders often use a futures contract to buy or sell commodities from any category at a predetermined price and time in the future.

Options trader vs commodity trader salary

Options traders and commodity traders have different pay scales, as shown below.

Options TraderCommodity Trader
Average salary$110,139$93,220
Salary rangeBetween $65,000 And $185,000Between $55,000 And $156,000
Highest paying CityNew York, NYStamford, CT
Highest paying stateNew YorkNew Hampshire
Best paying companyThe CitadelThe Citadel
Best paying industryFinanceFinance

Differences between options trader and commodity trader education

There are a few differences between an options trader and a commodity trader in terms of educational background:

Options TraderCommodity Trader
Most common degreeBachelor's Degree, 82%Bachelor's Degree, 77%
Most common majorFinanceFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Options trader vs commodity trader demographics

Here are the differences between options traders' and commodity traders' demographics:

Options TraderCommodity Trader
Average age4343
Gender ratioMale, 90.8% Female, 9.2%Male, 87.3% Female, 12.7%
Race ratioBlack or African American, 5.4% Unknown, 4.1% Hispanic or Latino, 11.3% Asian, 12.2% White, 66.7% American Indian and Alaska Native, 0.2%Black or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.3% Asian, 12.2% White, 66.7% American Indian and Alaska Native, 0.2%
LGBT Percentage6%6%

Differences between options trader and commodity trader duties and responsibilities

Options trader example responsibilities.

  • Enact, and manage equity block desk operation and set up floor broker network on NYSE.
  • Create VBA applications to automate basic trading functions and administration functions such as reorganization tenders and trade pricing issues.
  • Manage business, sales, marketing, international negotiation and communication for a commodities business.
  • Trade options profitably on screen markets and trade complex option spreads via telephone brokers at the CBOE and CME.
  • Experience in communicating and executing derivative arbitrage opportunities, as well as communicating and executing trades fitting against an option position.
  • Research the SPX, DOW, and NASDAQ.
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Commodity trader example responsibilities.

  • Trade, build, manage, and modele interest rate derivative positions via exchange floor
  • Manage and execute physical/financial grains book as well as base metal arbitrage portfolio.
  • Manage procurement and sales of bulk grains and agricultural commodities for redistribution into local dairy operations in Idaho.
  • Trade a variety of investment vehicles including commodity futures, FOREX and equities.
  • Develop automated and discretionary trading systems for currency, commodity futures, and equities markets.
  • Assist in audits from FINRA at corporate and branch levels.
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Options trader vs commodity trader skills

Common options trader skills
  • FX, 32%
  • Stock Options, 17%
  • Equities, 11%
  • Stock Market, 5%
  • Risk Management Strategies, 3%
  • Equity Options, 3%
Common commodity trader skills
  • Commodities, 14%
  • Commodity Trading, 11%
  • Logistics, 11%
  • Market Trends, 9%
  • Derivative, 6%
  • Financial Markets, 5%