Add training workflow, datasets, and runbook
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498A COMPleTe gUIde TO THe FUTUreS MArKeT
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Strategy 4a: Short Call (at-the-Money)
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example . Sell August $1,200 gold futures call at a premium of $38.80 /oz ($3,880), with August gold
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futures trading at $1,200/oz. (See Table 35.4 a and Figure 35.4 a.)
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tabLe 35.4a profit/Loss Calculations-Short Call (at-the-Money)
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(1) (2) (3) (4) (5)
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Futures price at
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expiration ($/oz)
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premium of august
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$1,200 Call at
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Initiation ($/oz)
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$ amount of
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premium received
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Call Value at
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expiration
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profit/Loss on
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position [(3) – (4)]
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1,000 38.8 $3,880 $0 $3,880
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1,050 38.8 $3,880 $0 $3,880
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1,100 38.8 $3,880 $0 $3,880
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1,150 38.8 $3,880 $0 $3,880
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1,200 38.8 $3,880 $0 $3,880
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1,250 38.8 $3,880 $5,000 –$1,120
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1,300 38.8 $3,880 $10,000 –$6,120
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1,350 38.8 $3,880 $15,000 –$11,120
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1,400 38.8 $3,880 $20,000 –$16,120
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FIGURE 35.4a Profi t/loss Profi le: Short Call (At-the-Money)
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Chart created using TradeStation. ©TradeStation T echnologies, Inc. All rights reserved.
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Price of August gold futures at option expiration ($/oz)
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Futures price at time
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of position initiation
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and strike price Breakeven price
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= $1,238.80
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Profit/loss at expiration ($)
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1,000
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5,000
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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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−17,500
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−15,000
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−12,500
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1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400
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