Pure Hedge – Livestock

10/27/23

The meats were all higher today but mixed for the week. December’23 live cattle were up 2.900 today and settled at 182.225 but down 2.400 for the week and below the 100-day moving average of 184.485. November’23 feeder cattle were slightly higher today, up 0.400 and settled at 236.900, that’s a loss of 5.325 for the week. December’23 lean hogs gained 1.850 today and settled at 70.475, up 4.475 for the week. I believe the cattle market will continue to break. Next year’s prices: June’24 Live Cattle 179.100, August’24 Feeder Cattle 257.800, August’24 Lean Hogs 93.775

LIVE CATTLE CALLS

MONTH	STRIKE	PRICE	COST
DEC’23 182.225	190C	0.550	$220
	195C	0.200	$80
	200C	0.100	$40
	205C	0.050	$20
	210C	0.025	$10
	ATM 182C 2.850	ATM STRADDLE 5.475	EXPIRES 12/1/23
FEB’24 182.950	190C	2.000	$800
	195C	1.050	$420
	200C	0.550	$220
	205C	0.325	$130
	210C	0.175	$70
	ATM 183C 4.600	ATM STRADDLE 8.950	EXPIRES 2/2/24
APR’24 184.900	190C	3.775	$1510
	195C	2.300	$920
	200C	1.400	$560
	205C	0.850	$340
	210C	0.525	$210
	ATM 185C 5.900	ATM STRADDLE 11.900	EXPIRES 4/5/24

LIVE CATTLE PUTS

MONTH	STRIKE	PRICE	COST
DEC’23 182.225	180P	1.800	$720
	175P	0.650	$260
	170P	0.275	$110
	165P	0.125	$50
	160P	0.075	$30
	ATM 182P 2.625	ATM STRADDLE 5.475	EXPIRES 12/1/23
FEB’24 182.950	180P	3.325	$1330
	175P	1.800	$720
	170P	0.950	$380
	165P	0.525	$210
	160P	0.300	$120
	ATM 183P 4.650	ATM STRADDLE 8.950	EXPIRES 2/2/24
APR’24 184.900	181P	4.275	$1710
	170P	1.450	$580
	165P	0.875	$350
	161P	0.600	$240
	155P	0.300	$120
	ATM 185P 6.000	ATM STRADDLE 11.900	EXPIRES 4/5/24

JUNE’24 LIVE CATTLE

CURRENT PRICE	PRICE ACTION	PRICE AFTER MOVE	STRIKE	CURRENT PRICE
179.100	20% BULL MOVE	214.920	214C	0.400
179.100	20% BEAR MOVE	143.280	144P	0.325
179.100	30% BULL MOVE	232.830	232C	0.125
179.100	30% BEAR MOVE	125.370	126P	0.075
179,100	40% BULL MOVE	250.740	250C	0.050
179.100	40% BEAR MOVE	107.400	108P	0.013

FEEDER CATTLE CALLS

MONTH	STRIKE	PRICE	COST
NOV’23 236.900	240C	1.300	$650
	245C	0.400	$200
	250C	0.125	$62.50
	255C	0.075	$37.50
	260C	0.050	$25
	ATM 236C 3.000	ATM STRADDLE 5.100	EXPIRES 11/16/23
JAN’24 235.700	240C	4.075	$2037.50
	245C	2.525	$1262.50
	250C	1.525	$762.50
	255C	0.925	$462.50
	260C	0.575	$287.50
	ATM 235C 6.300	ATM STRADDLE 11.900	EXPIRES 1/25/24
MAR’24 238.575	250C	3.900	$1,950
	260C	1.900	$950
	270C	0.950	$475
	280C	0.525	$262.50
	290C	0.325	$162.50
	ATM 238C 8.525	ATM STRADDLE 16.475	EXPIRES 3/28/24

FEEDER CATTLE PUTS

MONTH	STRIKE	PRICE	COST
NOV’23 236.900	233P	1.100	$550
	230P	0.600	$300
	225P	0.225	$112.50
	220P	0.100	$50
	215P	0.050	$25
	ATM 236P 2.100	ATM STRADDLE 5.100	EXPIRES 11/16/23
JAN’24 235.700	230P	3.525	$1,762.50
	225P	2.125	$1,062.50
	220P	1.300	$650
	215P	0.800	$400
	210P	0.500	$250
	ATM 235P 5.600	ATM STRADDLE 11.900	EXPIRES 1/25/24
MAR’24 238.575	230P	4.625	$2,312.50
	226P	3.450	$1,725
	220P	2.150	$1,075
	210P	1.000	$500
	200P	0.500	$250
	ATM 238P 7.950	ATM STRADDLE 16.475	EXPIRES 3/28/24

AUGUST’24 FEEDER CATTLE

CURRENT PRICE	PRICE ACTION	PRICE AFTER MOVE	STRIKE	CURRENT PRICE
257.800	20% BULL MOVE	309.360	308C	1.600
257.800	20% BEAR MOVE	206.240	208P	1.325
257.800	30% BULL MOVE	335.140	334C	0.750
257.800	30% BEAR MOVE	180.460	182P	0.500
257.800	40% BULL MOVE	360.920	360C	0.450
257.800	40% BEAR MOVE	154.680	156P	0.175

LEAN HOG CALLS

MONTH	STRIKE	PRICE	COST
DEC’23 70.475	75C	0.775	$310
	80C	0.225	$90
	85C	0.125	$50
	90C	0.050	$20
	95C	0.050	$20
	ATM 70C 2.575	ATM STRADDLE 4.675	EXPIRES 12/14/23
FEB’24 73.500	77C	2.475	$990
	80C	1.600	$640
	85C	0.750	$300
	90C	0.400	$160
	95C	0.225	$90
	ATM 74C 3.675	ATM STRADDLE 7.850	EXPIRES 2/14/24
APR’24 78.925	85C	2.850	$1,140
	90C	1.625	$650
	95C	0.950	$380
	100C	0.575	$230
	106C	0.325	$130
	ATM 79C 5.200	ATM STRADDLE 10.475	EXPIRES 4/12/24

LEAN HOG PUTS

MONTH	STRIKE	PRICE	COST
DEC’23 70.475	67P	1.050	$420
	65P	0.625	$250
	60P	0.175	$70
	57P	0.075	$30
	55P	0.050	$20
	ATM 70P 2.100	ATM STRADDLE 4.675	EXPIRES 12/14/23
FEB’24 73.500	70P	2.475	$990
	65P	1.125	$450
	60P	0.500	$200
	55P	0.225	$90
	50P	0.100	$40
	ATM 74P 4.175	ATM STRADDLE 7.850	EXPIRES 2/14/24
APR’24 78.925	75P	3.550	$1,420
	70P	2.000	$800
	65P	1.075	$430
	60P	0.575	$230
	56P	0.325	$130
	ATM 79P 5.275	ATM STRADDLE 10.475	EXPIRES 4/12/24

AUGUST’24 LEAN HOGS

CURRENT PRICE	PRICE ACTION	PRICE AFTER MOVE	STRIKE	CURRENT PRICE
93.775	20% BULL MOVE	112.530	112C	1.550
93.775	20% BEAR MOVE	75.000	76P	1.575
93.775	30% BULL MOVE	121.907	120C	0.775
93.775	30% BEAR MOVE	65.642	66P	0.550
93.775	40% BULL MOVE	131.285	130C	0.375
93.775	40% BEAR MOVE	56.490	58P	0.225

Bill Allen
Senior Account Executive, Walsh Trading

Phone: 312-957-8079 or 800-556-9411
Email: [email protected]

www.walshtrading.com

Walsh Trading
53 W Jackson Suite 750
Chicago, Il 60604