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April 8, 2025

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.

Bullish Strategies 

Cotton-Buy the March 2026 85 call and sell the March 2026 100 call. Pay 70 cents per spread or $350 plus commissions and fees per spread. Maximum value at options expiration (2/6/2026) is $7500.00 minus trade costs and fees.

Hogs- Buy the HEN25 (July Lean Hogs) 96.00 Call and sell the HEN25 104.00 Call for 120 points per spread or $480.00 plus commissions and fees per spread. Maximum value at the options expiration (07/15/2025) is $3,200.00 less the trade costs and fees.

Wheat-Buy the December Chicago wheat 7.00 call and sell the December wheat 8.00 call for 10 cents or $500 plus commissions and fees per spread. Maximum value at options expiration (11/21/25) is 5K minus trade costs and fees.

Soymeal-Buy the March 2026 Soymeal 350 call and sell the Soymeal 4.00 call 5 points or $500 plus commissions and fees per spread. Maximum value at options expiration (2/20/26) is 5K plus trade costs and fees.

Natural Gas-Buy the October 25 6.00 call and sell the October Natural Gas 7.50 call for 6.5 points or $650.00 plus commissions and fees. The maximum value at options expiration (9/25/25) is $7500.00 minus trade costs and fees. 

Crude Oil-Buy the March 2026 80.00 call and sell the 90.00 call for 40 cents or $400 plus commissions and fees per spread. The maximum value at options expiration (2/17/2026) is $10K minus trade costs and fees.

Live Cattle-Buy the LEV25 (October Live Cattle) 205 Call and sell the LEV25 215 Call for 120 points per spread or $480.00 plus commissions and fees per spread. Maximum value at the options expiration (10/03/2025) is $4,000.00 less the trade costs and fees.

Bearish Strategies

Feeder Cattle -Buy the GFK25 (May Feeder Cattle) 260 Put and sell the GFK25 250 Put for 120 points per spread or $600.00 plus commissions and fees per spread. Maximum value at the options expiration (05/22/2025) is $5,000.00 less the trade costs and fees.

Gold-Buy the December Gold 2500 put and sell the December Gold 2400 put for 4 points or $400 plus commissions and fees per spread. Maximum value at option expiration (11/24/25) is 10K minus trade costs and fees. 

Silver-Buy the December Silver 22.00/20.00 put spread. Pay 10 cents or $500 per spread plus commissions and fees.  Maximum value at options expiration (11/24/25) is 10K minus trade costs and fees. 

Submitted by

Sean Lusk    slusk@walshtrading.com

312 957 8103

Ben Di Costanzo bdicostanzo@walshtrading.com

312 957 4163

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.