Grain Spreads: Commercial Hedge Spreads for Consideration
May 16,2025
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.
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Bullish Strategies
Buy the January 2026 soymeal 350 call and sell the January Soymeal 4.00 call. Pay 4 points or $400 per spread plus commissions and fees. Maximum value at options expiration (12/26/25) if both strikes finish in the money is $5K less trade costs and fees.
Buy the October Live Cattle 212 Call and Sell the October Live Cattle 222 Call for 2.25 per spread or $900 plus commissions/fess per spread. Maximum value at options expiration (10/03/25) if both strikes are in the money is $4,000, less trade costs and fees.
Buy the December 25 crude oil 75 call and sell the December 25 crude oil 85 call for 50 cents or $500.00 per spread plus commissions and fees. Maximum value at options expiration (11/17/25) if both strikes finish in the money is $10K less trade costs and fees.
Buy the November 25 12.00 call and sell the November soybean 1320 call for 6 cents or $300 plus commissions and fees. Maximum value at options expiration (10/24/25) if both strikes finish in the money is $6K less trade costs and fees.
Buy the November Feeder cattle 320 Call. Sell the November Feeder cattle 330 Call. Pay 1.30 points for the put spread or $650 plus commissions and fees. Maximum value at options expiration (11/20/25) if both strikes finish in the money is 5K minus trade costs and fees.
Bearish Strategies
Buy the October Sugar 17.00 Put and Sell the October Sugar 16.00 Put for 0.30 per spread or $336 plus commissions/fees per spread. Maximum value at options expiration (9/15/25) if both strikes are in the money is $1,120, less trade costs and fees.
Buy the October 2025 Silver 26.00 put and sell the October silver 24.00 put for 7 points or $350.00 plus commissions and fees per spread. Maximum values at options expiration (9/25/25) if both strikes finish in the money is $10K, less trade costs and fees.
Buy the December25 Gold 2750 put. Sell the December Gold 25 Gold 2650 put for 5 points or $500 per spread plus commissions and fees. Maximum value at options expiration (11/24/25) if both strikes finish in the money is $10K less trade costs and fees.
Buy the August Feeder cattle 280 put. Sell the August Feeder cattle 270 put. Pay 1.55 points for the put spread or $775 plus commissions and fees. Maximum value at options expiration (8/28/25) if both strikes finish in the money is 5K minus trade costs and fees.
Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
312 957 8103
888 391 7894 toll free
312 256 0109 fax
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