Walsh Gamma Trader

Bill AllenGeneral Commentary

11/5/24 If you would like to receive more information on the commodity markets, please use the link to join our email list Sign Up Now

 I have developed a “Basket” of commodities, in which you are only buying premium, with ZERO exposure to margin calls, based on my current market opinion, across the Livestock and Grain Complex’s. These are speculative trades Buying Calls and Puts. I am Bullish the Corn and Wheat Markets, and Bearish the Fats, Feeders, and Hogs. I would buy Calls in the Grain Markets and Buy Puts in the Livestock Markets. There are five commodities listed below, that I have selected to be included, based on my Market opinion. 

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Bullish: Corn and Wheat  –   Buying Calls

Bearish: Fats, Feeders, and Hogs   –  Buying Puts

Corn Market I would Buy 1 March’25 450 Call 9 ½ cents or $475.00   March’25 Corn was 430 ¼  

March’25 Corn Options Expire (2/21/25 – 108 Days)

Wheat Market I would Buy 1 March’25 630 Call 20 ¾ cents or $1,037.00   March’25 Wheat was 586 ¾ 

March’25 Wheat Options Expire (2/21/25 – 108 Days)

Live Cattle Market I would Buy 1 February’25 180 Put 2.55 or $1,020.00   February’25 Live Cattle were 186.42 ½ 

February’25 Live Cattle Options Expire (2/7/25 – 94 Days)

Feeder Cattle Market I would Buy 1 January’25 235 Put 3.45 or $1,725.00   January’25 Feeders were 243.17 ½  

January’25 Feeder Cattle Options Expire (1/30/25 – 86 Days)

Lean Hog Market I would Buy 1 February’25 80 Put 2.20 or $880.00   February’25 Lean Hogs were 87.95 

February’25 Lean Hogs Options Expire (2/14/25 – 101 Days) 

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Cost: $5,137.50/Trade Package, Plus Fees and Commissions

MAXIMUM LOSS: LIMITED

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With the current price levels, buying each of these commodities would cost $5,137.50 in total Premium, Plus Fees and Commissions. I would manage each position independently and take profit with your approval, when I thought it was appropriate, or at your direction. These are the five Markets I think can move the most, with the best upside potential, and your risk is already established. I would sell each Call or Put before it was in the money, so there would not be any risk of being exercised as well. You can also choose to buy more or fewer markets as well, but I like these the most.

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-Bill Allen

312-957-8079

[email protected]

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CURRENT PRICE AND CURRENT VALUE REFLECTS TODAYS BID AND OFFER PRICE ONLY 

AND WILL CHANGE OVER TIME AND WITH VOLATILITY. THERE IS SUBSTANTIAL RISK OF 

LOSS TRADING FUTURES AND OPTIONS.

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THE ABOVE PRICES REFLECT CURRENT DATE AND SETTLEMENT PRICES AND EXCLUDES THE COST OF COMMISSIONS AND FEES. THERE IS A SUBSTANTIAL RISK OF LOSS WHEN TRADING FUTURES OR OPTIONS ON FUTURES AND EACH INVESTOR OR TRADER MUST CONSIDER WHETHER IT IS A SUITABLE INVESTMENT. THE SUGGESTED TRADES WOULD REQUIRE A LARGE PERCENTAGE MOVE IN THE UNDERLYING TO BE PROFITABLE, SO THE LIKELIHOOD OF LOSS IS SUBSTANTIAL. PURCHASE OF LONG OPTIONS CAN RESULT IN THE LOSS OF THE ENTIRE PURCHASE PRICE PLUS COSTS.

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If you would like to receive more information on the commodity markets, please use the link to join our email list Sign Up Now

-Bill

312-957-8079

I have market commentary and option charts in 

Pure Hedge – Livestock

Pure Hedge – Grain   

at WWW.WALSHTRADING.COM 

Call for specific trade recommendations.

1-312-957-8079 

Email me for free research. 

[email protected] 

Bill Allen

Senior Account Executive

Direct:      1 312 957 8079

[email protected]

WALSH TRADING INC.

311 South Wacker Drive

Suite 540

Chicago, Illinois 60606

www.walshtrading.com

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. 

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