498A COMPleTe gUIde TO THe FUTUreS MArKeT
 Strategy 4a: Short Call (at-the-Money) 
example . Sell August  $1,200  gold futures call at a premium of  $38.80 /oz  ($3,880),  with August gold 
futures trading at $1,200/oz. (See Table   35.4   a and Figure   35.4   a.)   
 tabLe 35.4a     profit/Loss Calculations-Short Call (at-the-Money)  
(1) (2) (3) (4) (5)
Futures price at 
expiration ($/oz)
premium of august 
$1,200 Call at 
Initiation ($/oz)
$ amount of 
premium received
Call Value at 
expiration
profit/Loss on 
position [(3) – (4)]
1,000 38.8 $3,880 $0 $3,880
1,050 38.8 $3,880 $0 $3,880
1,100 38.8 $3,880 $0 $3,880
1,150 38.8 $3,880 $0 $3,880
1,200 38.8 $3,880 $0 $3,880
1,250 38.8 $3,880 $5,000 –$1,120
1,300 38.8 $3,880 $10,000 –$6,120
1,350 38.8 $3,880 $15,000 –$11,120
1,400 38.8 $3,880 $20,000 –$16,120
    FIGURE   35.4a    Profi  t/loss Profi  le: Short Call (At-the-Money)
Chart created using TradeStation. ©TradeStation T echnologies, Inc. All rights reserved. 
Price of August gold futures at option expiration ($/oz)
Futures price at time
of position initiation
and strike price Breakeven price
= $1,238.80
Profit/loss at expiration ($)
1,000
5,000
2,500
−5,000
−2,500
0
−10,000
−7,500
−17,500
−15,000
−12,500
1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400