call options and put options question

Fuel consumers often utilize call options to mitigate their exposure to potentially rising fuel prices of all sorts i.e. bunker fuel, diesel fuel, gasoline, heating oil, jet fuel, fuel oil, etc

Is there any particular group of investors who typically use/prefer put options?
I look forward to your feedback?
davidmich

Someone who owns the underlying asset and wishes to protect against a fall in price might purchase a put. But note that writing (selling) a put and buying a call gives you protection in the same direction; that is, both profit when the underlying asset rises in value, and they can profit by similar amounts if they are each in the money.

As I understand it…

If you buy a put option, you are betting that the underlying security will drop in value. Opposite for call option.

When you sell a put option, you want a stock’s price to rise so that the buyer of the put you sold will not exercise his right to sell the stock.

You may sell a call and hope that it declines in value; and then buy it to close the position at a lower premium, with the difference representing your profit.When you sell a call option, you are a short seller and that places you into what is called a short position.
But for bonds “put” and “call” have opposite effects or am I misreading this?
“Generally, one buys a call option on the bond if one believes that interest rates will fall, causing an increase in bond prices.”
Likewise,

"one buys the put option if one believes that the opposite will be the case. "

[2] One result of trading in a bond option, is that the price of the underlying bond is “locked in” for the term of the contract, thereby reducing the credit riskassociated with fluctuations in the bond price.

They aren’t opposite when you’re thinking about bond prices. A call option still pays off if the price of the bond increases. It’s just that bond prices move in the opposite direction as interest rates, a bet that bond prices will rise is also, (all else being equal in regards to the creditworthiness of the issuer), a bet that interest rates will fall.

http://www.bizterms.net/term/Put-provision-on-bonds.html
A put provision grants the bondholder the right to sell the issue back to the issuer at par value on designated dates. Here the advantage to the investor is that if interest rates rise after the issue date, thereby reducing a bond’s price, the investor can force the issuer to redeem the bond at par value.

call provision
The stipulation in most bond indentures that permits the issuer to repurchase securities at a fixed price or at a series of prices before maturity. This provision operates to the detriment of investors because calls on high-interest bonds usually occur during periods of reduced interest rates. Thus, an investor whose bond is called must find another investment, often one that provides a lower return. Certain preferred stock issues are also subject to call.

I don’t see why there would be. I’d sell a put option, or make a forward sale, on wheat if I wanted to lock in the price on wheat, because the price of wheat is seasonal, and farm expenses are seasonal.

Oil energy costs are mostly front-loaded. You handle that with long-term contracts, not options.