Texas/New Mexico Stateline | Certainly could do that if you wanted to be double hedged. And if it is worth it to spend another $21 per head. But then it would not be a hedge, it would be speculating on the extra position.
You can't get any of your LRP premium back as far as I know. But you can sell the put later if you wanted to if it were to gain value, or you wanted to cut your losses.
A very likely scenario would be to spend the $21 per head, contract closes out about $147 and you would get nothing considering your purchase price.
I have always found the LRP premium to be as expensive or about the same as buying puts on your own. So I have never bought any, even though I have priced it out many many times. The fact I can roll a put to a new position or sell it later on always steered me in that direction.
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Question on feeder cattle puts
