Add training workflow, datasets, and runbook
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500A COMPleTe gUIde TO THe FUTUreS MArKeT
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Strategy 4c: Short Call (In-the-Money)
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example . Sell August $1,100 gold futures call at a premium of $110.10 /oz ($11,010), with August
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gold futures trading at $1,200/oz. (See Table 35.4 c and Figure 35.4 c.)
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FIGURE 35.4b Profi t/loss Profi le: Short Call (Out-of-the-Money)
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Chart created using TradeStation. ©TradeStation T echnologies, Inc. All rights reserved.
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Price of August gold futures at option expiration ($/oz)
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Futures price at time
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of position initiation Strike price
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Breakeven price
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= $1,309.10
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Profit/loss at expiration ($)
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1,000
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2,500
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−5,000
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−2,500
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0
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−10,000
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−7,500
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1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400
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tabLe 35.4c profit/Loss Calculations: Short Call (In-the-Money)
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(1) (2) (3) (4) (5)
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Futures price at
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expiration ($/oz)
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premium of august $1,100
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Call at Initiation ($/oz)
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Dollar amount of
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premium received
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Value of Call
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at expiration
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profit/Loss on
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position [(3) – (4)]
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1,000 110.1 $11,010 $0 $11,010
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1,050 110.1 $11,010 $0 $11,010
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1,100 110.1 $11,010 $0 $11,010
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1,150 110.1 $11,010 $5,000 $6,010
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1,200 110.1 $11,010 $10,000 $1,010
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1,250 110.1 $11,010 $15,000 –$3,990
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1,300 110.1 $11,010 $20,000 –$8,990
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1,350 110.1 $11,010 $25,000 –$13,990
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1,400 110.1 $11,010 $30,000 –$18,990
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