541
OPTION TrAdINg STrATegIeS    FIGURE   35.20b    Profi  t/loss Profi  le: Bull Put Money Spread (long Put with lower Strike Price/
Short Put with Higher Strike Price); Case 2—long Out-of-the-Money Put/Short At-the-Money 
Put with Comparison to Short At-the-Money Put 
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
5,000
2,500
0
−2,500
−5,000
−7 ,500
−10,000
−12,500
−15,000
1,050 1,100 1,150 1,200 1,250
Bull put money spread
Short at-the-money
put
Breakeven price on spread = $1,171.40
Breakeven price on short put $1,161.30
1,300 1,350 1,400
−17 ,500
Futures price at time
of position initiation
 tabLe 35.21      profit/Loss Calculations: bear put Money Spread (Short put with Lower Strike price/Long 
put with higher Strike price)  
(1) (2) (3) (4) (5) (6) (7)
Futures price 
at expiration 
($/oz)
premium of 
august $1,150 
put ($/oz)
$ amount 
of premium 
paid
premium of 
august $1,100 
put ($/oz)
$ amount 
of premium 
received
Value of 
$1,150 
put
Value of 
$1,100 
put
profit/Loss on position 
[(5) − (3) + (6) − (7)]
1,000 19.9 $1,990 10.1 $1,010 $15,000 $10,000 $4,020
1,050 19.9 $1,990 10.1 $1,010 $10,000 $5,000 $4,020
1,100 19.9 $1,990 10.1 $1,010 $5,000 $0 $4,020
1,150 19.9 $1,990 10.1 $1,010 $0 $0 –$980
1,200 19.9 $1,990 10.1 $1,010 $0 $0 –$980
1,250 19.9 $1,990 10.1 $1,010 $0 $0 –$980
1,300 19.9 $1,990 10.1 $1,010 $0 $0 –$980
1,350 19.9 $1,990 10.1 $1,010 $0 $0 –$980
1,400 19.9 $1,990 10.1 $1,010 $0 $0 –$980