692 Part V: Index Options and Futures 
FIGURE 34-3. 
January soybean, heavily ratioed spread. 
90 
60 
30 
- 0 
e 575 625 650 675 725 a. -30 0 
.1!l -60 C 
~ 
-90 
-120 At Expiration 
-150 
-180 
Futures Price 
FOLLOW-UP ACTION 
The same follow-up strategies apply to these futures options as did for stock options. 
They will not be rehashed in detail here; refer to earlier chapters for broader expla­
nations. This is a summary of the normal follow-up strategies: 
Ratio call spread: 
Follow-up action in strategies with naked options, such as this, generally involves 
taking or limiting losses. A rising market will produce a negative EFP. 
Neutralize a negative EFP by: 
Buying futures 
Buying some calls 
Limit upside losses by placing buy stop orders for futures at or near the upside 
break-even point. 
Put backspread: 
Follow-up action in strategies with an excess of long options generally involves 
taking or protecting profits. A falling market will produce a negative EFP. 
Neutralize a negative EFP by: 
Buying futures 
Selling some puts