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