ACE Live Cattle - Apr 29, 2019

Below is an illustration trading futures options on Live Cattle.  Our post shows bullish and bearish positions using a combination of call and put options.

Trade Options on Futures

Live Cattle * Directional & Neutral Positions

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Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report. 
Ask about the Weekly Option's Report for more information or watch our video.

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Term Structure

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Contract Size - 40,000 lbs (~ 18 MT)

Tick Size:  $.00025 per pound (=$10 per contract)

Trading Hours: CME Globex: Sunday - Friday 6:00 p.m. - 5:00 p.m. Eastern Time (ET) with  trading halt 4:15 p.m. - 4:30 p.m.

* Tip: Click here to read a helpful tip about Live Cattle futures and options

Live Cattle

Below are weekly & daily charts for reference. (CME:  Weekly | Daily). 

Strategies illustrate both views into summer months, whether a continued fall in price with slight retracement to the upside or a potential reversal.

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* Tip: Click here on enlarging images


Below is the starting position for bullish calendar spread and beneath is a bearish diagonal version for an opposite view. Both illustrate a directional play with positive Theta. 

The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.

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We look forward to answering your questions and helping you get started