WALSH PURE SPREADER
Pure Hedge Division
RICH MORAN 11/3/2026
LIVE CATTLE
FEB-APR-JUN LIVE CATTLE BUTTERFLY SPREAD
(LEG27-LEJ27)-(LEJ27-LEM27)
The FEB-APR-JUN LIVE CATTLE BUTTERFLY [(LEG27-LEJ27)-(LEJ27-LEM27)] is the FEB-APR Spread [(LEG27)-(LEJ27)] minus (-) the APR-JUN Spread [(LEJ27-LEM27)]. These are both 2-month spreads that overlap at the APR contract (APR27).
Today, the FEB-APR Spread [(LEG27)-(LEJ27)] settled Negative (-) 2.27½ while the APR-JUN Spread [(LEJ27-LEM27)] settled Positive (+) 4.87½. So, the butterfly settled -7.15 (-2.27½ minus +4.87½).
Today, this butterfly traded and settled above both the 14-day and 21-day moving averages for the first time since October 15th. I think buying this butterfly spread while it is above both of these moving averages might be a good risk/reward trade with a quick stop just below its most recent low of -7.95.
I am suggesting that when the market opens tomorrow morning, try to buy (LEG27-LEJ27)-(LEJ27-LEM27) at -7.15 (today’s settlement) or better.
Risk 0.85 or $340 Per Spread to make 1.30 or $5.20 Per Spread, plus fees and commissions.
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Rich Moran
Senior Commodities Broker
Direct: (312)985-0298
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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