The blue line shows the settlement price of Dec’22 cotton futures on the ICE. The scale of the futures price is on the left side of the chart, in cents per pound. The red line shows the premium associated with a $0.120 strike put option on Dec’22 futures. The scale of the options premium is on the right side of the chart, also in cents per pound. Naturally, the put option premium increases when Dec’22 futures are declining, and the put option gets cheaper when the futures price rises. The Dec’22 ICE cotton contract peaked mid-year, fell fifty cents, recovered to back over $1.10, then declined 45 cents. Put options purchased earlier in the year would have been effective downside price insurance.