Add training workflow, datasets, and runbook
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OPTION TrAdINg STrATegIeS
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example . Sell August $1,200 gold futures put at a premium of $38.70/oz ($3,870), with August gold
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futures trading at $1,200/oz. (See Table 35.6 a and Figure 35.6 a.)
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Price of August gold futures at option expiration ($/oz)
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Futures price at time
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of position initiation
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Short futures
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At-the-money put
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(strike price = $1,200)
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Out-of-the-money put
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(strike price = $1,100)
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In-the-money
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put (strike price = $1,300)
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Price/loss at expiration ($)
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1,000
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10,000
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−10,000
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−15,000
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5,000
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−5,000
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0
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15,000
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20,000
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1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400
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FIGURE 35.5d Profi t/loss Profi le: Short Futures and long Put Comparisons (In-the-Money,
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At-the-Money, and Out-of-the-Money)
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tabLe 35.6a profit/Loss Calculations: Short put (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 $1,200
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put at Initiation ($/oz)
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$ amount of
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premium received
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put 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 38.7 $3,870 $20,000 –$16,130
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1,050 38.7 $3,870 $15,000 –$11,130
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1,100 38.7 $3,870 $10,000 –$6,130
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1,150 38.7 $3,870 $5,000 –$1,130
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1,200 38.7 $3,870 $0 $3,870
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1,250 38.7 $3,870 $0 $3,870
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1,300 38.7 $3,870 $0 $3,870
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1,350 38.7 $3,870 $0 $3,870
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1,400 38.7 $3,870 $0 $3,870
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