532A COMPleTe gUIde TO THe FUTUreS MArKeT
 Strategy 17: the ratio Call Write (Long Futures + Short 2 Calls) 
example . Buy August gold futures at  $1,200  and simultaneously sell two August  $1,200  gold futures 
calls at a premium of  $38.80/ oz.  ($7,760).  (See Table   35.17    and Figure   35.17   .)  
    FIGURE   35.16    Profi  t/loss Profi  le: Synthetic Short Futures (long Put + Short Call). 
Futures price at time
of position initiation
Breakeven price
= $1,210.40
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
20,000
15,000
10,000
5,000
−5,000
−10,000
−15,000
−20,000
0
1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400
 tabLe 35.17      profit/Loss Calculations: ratio Call Write—Long Futures + Short 2 Calls (Similar to 
Short Straddle)  
(1) (2) (3) (4) (5) (6)
Futures price 
at expiration 
($/oz)
premium of 
august $1,200 Call 
at Initiation ($/oz)
$ amount of 
total premium 
received
profit/Loss on 
Long Futures 
position
Value of 2 Calls 
at expiration
profit/Loss on position 
[(3) + (4) − (5)]
1,000 38.8 $7,760 –$20,000 $0 –$12,240
1,050 38.8 $7,760 –$15,000 $0 –$7,240
1,100 38.8 $7,760 –$10,000 $0 –$2,240
1,150 38.8 $7,760 –$5,000 $0 $2,760
1,200 38.8 $7,760 $0 $0 $7,760
1,250 38.8 $7,760 $5,000 $10,000 $2,760
1,300 38.8 $7,760 $10,000 $20,000 –$2,240
1,350 38.8 $7,760 $15,000 $30,000 –$7,240
1,400 38.8 $7,760 $20,000 $40,000 –$12,240