A short-term (usually 30-day) option on a futures contract whereby the option expires before its underlying futures reaches maturity. If exercised, the option enters the holder into a position in the nearby month futures. This type of option allows investors to invest in futures during a month when a particular futures contract is not available for trading. For example, if soybean futures contracts are not available for sale in March, a trader can purchase a serial option whose underlying is a soybean futures for the following month (April) in anticipation that this futures would later become available in February.

The serial option is particularly instrumental for investors and producers willing to hedge their short-term risks. Furthermore, it can be used to extend a hedge from a specific month to the following month.