Live Cattle

Live Cattle futures have run up to extraordinary levels with the December 2011 contract reaching $1.26. Technical Analysis shows divergence between the price levels making new highs and the weaker Oscillator. I expect the recent highs to be tested and I will increase my hedges from currently 70% to 100% if this market fails to make a new high. Although I don't often trade options, I will try to sell out of the money calls and buy out of the money puts this coming week.