When deciding whether or not to use put options as a marketing tool, the strike price and associated premium levels along with an individuals cost of production must be taken into consideration. The objective of this research was to develop an easily understood strategy that would help determine the time and strike price level to hedge cotton using the cotton options market. Results of this study indicated that put options purchased four cents in-the-money between May 21 and 31 increased net returns by $0.0167 per pound on average over the study period.