Ferrisgeorge
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You may want to read more to help you make an informed decision. The put options are a way to buy "insurance against a market downturn" while still being able to profit from rising cattle prices. They are usually sold on the chicago mercantile exchange. The Chicago Mercantile Exchange(CME) has some information about how options and puts work. They are different that futures where margin call are a reality. Unfortunately one limitation of the cme options is you have to buy them in units of , I believe 48,000 lbs. If you do not operate in this volume of cattle then you may want to investigate the"Livestock Risk Protection Program". which is a government assisted program something like crop insurance. Just like forward contracting there are pros and cons with all these choices but they are tools which may help your marketing program. You county extension agent may also be able to assit you.