Pure Hedge - Livestock and Grain - SPECIAL

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     I structured a “Basket” of commodities, in which you are only buying premium, with ZERO exposure to margin calls, based on my current market opinion, across the Livestock and Grain Complex’s. These are speculative trades Buying Calls and Puts. I am Bullish the Corn and Wheat Markets, and Bearish the Fats, Feeders, and Hogs. I would buy Calls in the Grain Markets and Buy Puts in the Livestock Markets. There are five commodities listed below, that I have selected to be included, based on my Market opinion. 

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Bullish: Corn and Wheat  -   Buying Calls

Bearish: Fats, Feeders, and Hogs   -  Buying Puts

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Corn Market I would Buy 1 March’25 450 Call 9 ½ cents or $475.00   March’25 Corn was 430 ¼  

March’25 Corn Options Expire (2/21/25 – 108 Days)

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Wheat Market I would Buy 1 March’25 630 Call 20 ¾ cents or $1,037.00   March’25 Wheat was 586 ¾ 

March’25 Wheat Options Expire (2/21/25 – 108 Days)

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Live Cattle Market I would Buy 1 February’25 180 Put 2.55 or $1,020.00   February’25 Live Cattle were 186.42 ½ 

February’25 Live Cattle Options Expire (2/7/25 – 94 Days)

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Feeder Cattle Market I would Buy 1 January’25 235 Put 3.45 or $1,725.00   January’25 Feeders were 243.17 ½  

January’25 Feeder Cattle Options Expire (1/30/25 – 86 Days)

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Lean Hog Market I would Buy 1 February’25 80 Put 2.20 or $880.00   February’25 Lean Hogs were 87.95 

February’25 Lean Hogs Options Expire (2/14/25 – 101 Days) 

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Cost: $5,137.50/Trade Package, Plus Fees and Commissions

MAXIMUM LOSS: LIMITED

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With the current price levels, buying each of these commodities would cost $5,137.50 in total Premium, Plus Fees and Commissions. I would manage each position independently and take profit with your approval, when I thought it was appropriate, or at your direction. These are the five Markets I think can move the most, with the best upside potential, and your risk is already established. I would sell each Call or Put before it was in the money, so there would not be any risk of being exercised as well. You can also choose to buy more or fewer markets as well, but I like these the most.

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-Bill Allen

312-957-8079

BALLEN@WALSHTRADING.COM

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CURRENT PRICE AND CURRENT VALUE REFLECTS TODAYS BID AND OFFER PRICE ONLY 

AND WILL CHANGE OVER TIME AND WITH VOLATILITY. THERE IS SUBSTANTIAL RISK OF 

LOSS TRADING FUTURES AND OPTIONS.

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 If you would like to receive more information on the commodity markets, please use the link to join our email list   Sign Up Now 

 

 

Good Luck Tonight Everyone!

 

-Bill

 

312-957-8079

 

 

I have market commentary and option charts in 

Pure Hedge – Livestock

Pure Hedge – Grain   

at WWW.WALSHTRADING.COM 

 

 

Call for specific trade recommendations.

1-312-957-8079 

 

Email me for free research. 

BAllen@walshtrading.com 

Bill Allen

Senior Account Executive

Direct:      1 312 957 8079

ballen@walshtrading.com

WALSH TRADING INC.

311 South Wacker Drive

Suite 540

Chicago, Illinois 60606

www.walshtrading.com

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.


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On the date of publication, Bill Allen did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.