Grain Spreads: Ideas to Consider into 2026

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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.

Bullish Strategies

Natural Gas

Buy the June 550 call and sell the June 650 call. Pay 5 points or $500.00 plus commissions and fees. Risk is price paid for the option spread plus the commissions and fees. Maximum potential profit is $10,000.00 less commissions and fees if held to expiration and June futures are at 6.50 or above. Expiration is 5/27//2026.

Crude Oil

Buy the May 72 call and sell the May 80 call. Pay 0.50 or $500.00 plus commissions and fees. Risk is price paid for the option spread plus the commissions and fees. Maximum potential profit is $5,000.00 less commissions and fees if held to expiration and May futures are at 80.00 or above. Expiration is 4/16//20226.

Feeder Cattle

Buy January Feeder Cattle 340/360 call spread for 300.0 points or $1,500 plus commissions and fees. Maximum value at option expiration (1/29/26), if both options expire in the money, is $10,000 less trade costs and fees.

Live Cattle

Buy the April cattle 226 call and sell the April cattle 250 call for 500 points or 2k per spread plus commissions and fees. Maximum value at options expiration (4/2/26) is $8800 per spread less trade costs and fees.

Soybeans

Buy the November 2026 12.00 calls and sell the 14.00 calls for 16 cents or $800 plus commissions and fees. Maximum value at options expiration (10/23/26) is 10K per spread less trade costs and fees.

Bearish Strategies

Gold/Silver-End of year profit taking/trade deals

Gold-Buy the April 2026 Gold 3500 put and sell the 3300 put. Pay 6.00 or $600 plus trade costs and fees. The maximum profit at option expiration (3/26/26) if both strikes finish in the money is 20K, less trade costs and fees.

Buy the March 2026 Silver 40.00 puts and sell the March 26 Silver 36.00 puts for 6 points or $300 maximum risk plus commissions and fees. Maximum value at options expiration (2/24/26) if both strikes finish in the money is 20K, less trade costs and fees.

Livestock Hedges

Buy the May 2026 Feeder cattle 280 put and sell the May Feeder cattle 250 put for 500 points or $2500 per spread plus commissions and fees. Maximum value at options expiration (5/21/26) is 15K less trade costs and fees.

Buy the August 2026 Live cattle 190 put and sell the August 160 put for 500 points or 2K per spread plus commissions and fees. Maximum value at options expiration (8/7/26) is 12k less trade costs and fees.

Buy the June lean hog 90 put and sell the 80 put for 150 points or $600 per spread plus commissions and fees. Maximum value at options expiration (6/12/26) is 4k less trade costs and fees.

Sean Lusk

Vice President, Walsh Commercial Hedging Services

Direct: 312-957-8103

slusk@walshtrading.com

888.391.7894

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.