This is Cotton (courtesy of
barchart.com):

It has been stuck in the range of that long bar for quite a while, broke out, then dropped back down. It is in no hurry to go anywhere. Trading it I would like to setup a neutral position, but giving me some space to the upside. I use a Calendar Spread to manage the risk (as a hedge, reducing the risk) and then shorting a second Put Option.

This is a short-term trade, we will be out before the end of the May contract. Note the extreme wide area in which we are capturing profit (risk graph to the right). Breakeven is the thick yellow lines, profit in between. $300 loss pictured as the thin yellow line below - really low risk. Options graph on the left:
Blue is our profit/loss line on entry day, Orange the P/L on expiry of the May Options Contract, red the P/L for the Jul contract - we won't be in the market by then any more.
If cotton turns down, we can drop one of the two short Puts, turning the position into a Calendar Spread:

Risk is REALLY low (thin yellow lines at $300 loss); we are now capturing profit on cotton trading lower / staying level