547
OPTION TrAdINg STrATegIeS
    FIGURE   35.24    “Bullish/Nonvolatile” expected Probability distribution and Profi  t/loss 
Profi  les for Three Alternative Bullish Strategies 
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
25,000
12,500
−12,500
−25,000
0
1,050 1,100 1,150 1,200 1,250
Long futures
Short 2 puts
Long 2 calls
.20
.18
.16
.14
.12
.10
Probability
.08
.06
.04
.02
1,300 1,350 1,400
    FIGURE   35.25    “Bullish/V olatile” expected Probability distribution and Profi  t/loss Profi  les 
for Three Alternative Bullish Strategies 
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
25,000
12,500
−12,500
−25,000
0
1,050 1,100 1,150 1,200 1,250
Long futures
Short 2 puts
Long 2 calls
.20
.18
.16
.14
.12
.10
Probability
.08
.06
.04
.02
1,300 1,350 1,400