549
OPTION TrAdINg STrATegIeS
    FIGURE   35.28    “Neutral/Nonvolatile” expected Probability distribution and Profi  t/loss 
Profi  les for Two Alternative Neutral Strategies 
 “Neutral/Nonvolatile” expected Probability distribution and Profi  t/loss 
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
10,000
5,000
−5,000
−10,000
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
Long straddle
Short straddle
    FIGURE   35.29    “Neutral/V olatile” expected Probability distribution and Profi  t/loss Profi  les 
for Two Alternative Neutral Strategies 
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
10,000
5,000
−5,000
−10,000
−15,000
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
Long straddle
Short straddle