548A COMPleTe gUIde TO THe FUTUreS MArKeT
    FIGURE   35.26    “Bearish/Nonvolatile” expected Probability distribution and Profi  t/loss 
Profi  les for Three Alternative Bearish Strategies 
 “Bearish/Nonvolatile” expected Probability distribution and Profi  t/loss 
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
25,000
12,500
−12,500
−25,000
0
1,050 1,100 1,150 1,200 1,250
Short futures
Short 2 calls
Long 2 puts
.20
.18
.16
.14
.12
.10
Probability
.08
.06
.04
.02
1,300 1,350 1,400
    FIGURE   35.27    “Bearish/V olatile” expected Probability distribution and Profi  t/loss Profi  les 
for Three Alternative Bearish Strategies 
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
25,000
12,500
−12,500
−25,000
0
1,050 1,100 1,150 1,200 1,250
.20
.18
.16
.14
.12
.10
Probability
.08
.06
.04
.02
1,300 1,350 1,400
Short futures
Short 2 calls
Long 2 puts