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Commercial Hedge Spreads
We are looking for good risk to reward ratios using option spreads for low cost to entry in our opinion, for the goal of catching bigger protracted moves in the underlying futures. The risk is the price paid for the call or put spreads plus all commissions and fees.
Calls to Action
For The Bulls
January 2026 Cotton
Buy the January 26 ICE Cotton 85 call. Sell the January 26 ICE cotton 100 Call.
Pay 60 points per spread for a risk of $300 plus commissions and fees.
Maximum value at options expiration, (12/19/25) if both strikes are in the money is $7500 minus trade costs and fees.
Crude Oil March 2026
Buy the March 2026 90.00 call and sell the March 26 100.00 call.
Pay 50 cents per call spread for a risk of $500 plus commissions and fees.
Maximum value at options expiration, (2/17/2026) if both strikes finish in the money is 10K minus all trade costs and fees.
Bean Oil
Buy the January 2026 Bean Oil 60 call. Sell the January 26 Bean oil 70 call.
Pay 60 points per spread for a risk of $360 plus commissions and fees.
Maximum value at options expiration on (12/26/25) if both strikes finish in the money is $6600 minus trade costs and fees.
June 2025 Live Cattle
Buy the June 25 Live Cattle 200 call. Sell the June Live Cattle 210 Call.
Pay 100 points per spread for a risk of $400.00 plus commissions and fees.
Maximum value at options expiration, (6/6/25) if both strikes are in the money is $4,000 minus trade costs and fees.
August Feeder Cattle
Buy the August 25 Feeder cattle 280 call. Sell the August Feeder Cattle 288.00 call.
Pay 200 points per spread for a risk of $1,000.00 plus commissions and fees.
Maximum value at options expiration, (8/28/25) if both strikes are in the money is $4,000 minus trade costs and fees.
For The Bears
Gold October 2025
Buy the October Gold 2500 put. Sell the October Gold 2400 put
Pay 4.5 points per spread for a risk of $450.00 plus commissions and fees.
Maximum value at options expiration, (9/25/25) if both strikes are in the money is 10K minus trade costs and fees.
May 2026 Soybeans
Buy the May 2026 9.00 put and sell the May 2026 8.00 put.
Pay 9 cents per spread for a risk of $450 plus commissions and fees.
Maximum value at options expiration, (4/4/26) if both strikes finish in the money is $5K minus trade costs and fees.
Live Cattle
Buy the April 190 Live Cattle Put. Sell the April 183 Put.
Pay 140 Points per spread for a risk of $560 Plus commissions and Fees.
Maximum value at options expiration, (4/4/25) if both strikes are in the money is $2,800 minus trade costs and fees.
Feeder Cattle
Buy the May 260 Feeder Cattle Put. Sell the May 253 Put.
Pay 200 points per spread for a risk of $1,000 plus commissions and fees.
Maximum value at options expiration, (5/22/25) if both strikes are in the money is $3,500 minus trade costs and fees.
Please join me for a free grain webinar every Thursday at 3pm Central. We discuss supply, demand, weather, and the charts along with hedge and speculative trading ideas. Sign Up Now
Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
312 957 8103
888 391 7894 toll free
312 256 0109 fax
Walsh Trading
311 S Wacker Drive Suite 540
Chicago, Il 60606
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices.PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.
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