Grain Upside strategies 4-28-26

To participate in this week’s momentum based breakout higher in corn and wheat, here are the following strategies we like. These are our market opinions and should be treated as such. There is risk of loss in trading futures and options.

July Corn:
Buy 480 call
Sell 530 call
Sell 460 put
Net option cost appx ½ cent
Margin per contract = $800 appx.

This strategy has you long calls, so you benefit on upward price movement. The short put is what allows us to get into the position for almost no cost. To lower the downside risk we could also look at lowering the put strike. So with this strategy you are benefiting from July corn moving higher, with a max gain of 50 cents IF the market gets to that level by 6/26/2026 option expiration.

By selling the short put, you have unlimited downside risk below $4.60.

July Wheat:
Buy 7.25 call
Sell 7.75 call
Sell 6.25 put
Appx cost is 2 cents

This strategy works the same way as the corn options. You have 50 cents of upside for two cents of net cost. However, the short put does have unlimited risk below 6.25.