Grain Spreads: Commerical Hedge Spreads

Commercial Hedge Spreads

We are looking for good risk to reward ratios using option spreads for low cost to entry, for the goal of catching bigger protracted moves in the underlying futures in our opinion. The discussion of potential maximum profit does not imply the probable outcome of these trades.”  The risk is the price paid for the call or put spreads plus all commissions and fees. 

Calls to Action

Bull Plays

Buy LEZ25 December 2025 Live Cattle 210 Call and Sell the December 220 Call pay 140 points per spread for a risk of $600 plus commissions and fees. Maximum value at options expiration, (12/12/25) if both strikes are in the money is $4,000 minus trade costs and fees.

Buy HEZ25, April 2026 Lean Hog 100 calls. Sell the April 2026 calls 120 calls. Pay 100 points or $400 per spread plus commissions and fees. If both strikes finish in the money at expiration on 4/14/2026, one would collect 8K minus trade costs and fees. 

Buy GF November Feeder Cattle 2025 300 Call – Sell the November 310 Call. Pay 150 points per spread for a risk of $750 plus commissions and fees.  Maximum value at options expiration, (11/20/25) if both strikes are in the money is $5,000 minus trade costs and fees. 

Buy the CLH26 March Crude Oil $85.00 vs $95.00 call spread for 50 cents or $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. 

Buy the December 25 Bean Oil 60.00 calls and sell the December Bean Oil 70.00 calls. Pay 50 points or $300 plus commissions and fees. Maximum value at options expiration (11/21/25) if both strikes finish in the money would be 6K minus trade costs and fees. 

Buy the November 2025 Soybean 12.00 call. Sell the November 2025 Soybean 14.00 call. Pay 10 cents or $500 plus commissions and fees. Maximum value at options expiration (10/24/25) if both strikes finish in the money would be 10K minus trade costs and fees.

Buy the August Natural Gas 7.00 call. Sell the August Natural Gas 9.00 call. Pay 4 points or $400 plus commissions and fees. Maximum value at options expiration (7/28/25) if both strikes finish in the money would be 20K minus trade costs and fees.   

Bear Plays

Buy SI August 2026 Silver 26.00 puts and sell the August Silver 24.00 puts. Pay 10 cents or $500 per spread plus commissions and fees. Maximum value at options expiration (7/28/25) if both strikes finish in the money is 10K minus trade costs and fees.

Buy the December 2025 Gold 2400 put and sell the December Gold 2300 put. Pay 4 points or $400 plus commissions and fees. Maximum value at options expiration (11/24/25) if both strikes finish in the money is 10K minus trade costs and fees.  

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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.

 Sean Lusk

Vice President Commercial Hedging Division

Walsh Trading

312 957 8103

888 391 7894 toll free

312 256 0109 fax

slusk@walshtrading.com

www.walshtrading.com

Walsh Trading

311 S Wacker Drive Suite 540

Chicago, Il 60606