Cattle supplies look to be tight going into the holiday season and beyond as shown by the recent placement numbers in the cattle on feed report. I am looking for a rally in cattle into February. Here is a trade idea for Live Cattle:
Live Cattle – Sell the February 260 puts and buy the February 240 puts for a collection of 17 points.
Margin – $1,224.00
Risk – Maximum risk is $1,200.00 plus commissions and fees. Risk $800.00 of the maximum risk while looking to take profit if trade moves in our favor by 5 points or $2,000.00.
**Call me for a free consultation for a marketing plan regarding your livestock needs.**
Ben DiCostanzo
Senior Livestock Analyst
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109
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