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if you are an investor and the options market is normal backwardation option you will buy

if you are an investor and the options market is normal backwardation option you will buy

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Normal backwardation is when the forward price of a commodity or an asset future price is lower than its spot price, contrary to that contango is when spot price is lower and future price is higher.

When in normal backwardation you are expecting that the future price will fall so you should buy put option and sell call option. By selling call option you can earn premium since the price will be lower than the strike price. By buying a put option you can limit your loss to at certain extent.

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