Chapter 34: Futures and Futures Options 687 
FIGURE 34-1. 
January soybean, backspread. 
60 
50 
40 
30 ..... 
e 20 a.. 
0 10 ~ r::: 
~ 550 600 625 
-20 
-30 
Futures Price 
$50 per point ( which is cents when referring to soybeans) and stock options are worth 
$100 per point do not alter these calculations for a put backspread. 
Maximum upside profit potential= Initial debit or credit of position 
= 15 points 
Maximum risk = Maximum upside Distance between strikes 
x Number of puts sold short 
= 15-50 X 1 
= -35 points 
Downside break-even point = Lower strike 
- Points of risk/Number of excess puts 
= 550- 35/3 
= 538.3 
Thus, one is able to analyze a futures option p~tion or a stock option position 
in the same manner - by reducing everything to be in terms of points, not dollars. 
Obviously, one will eventually have to convert to dollars in order to calculate his prof­
its or losses. However, note that referring to everything in "points" works very well.