54 lines
935 B
Plaintext
54 lines
935 B
Plaintext
549
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OPTION TrAdINg STrATegIeS
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FIGURE 35.28 “Neutral/Nonvolatile” expected Probability distribution and Profi t/loss
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Profi les for Two Alternative Neutral Strategies
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“Neutral/Nonvolatile” expected Probability distribution and Profi t/loss
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Price of August gold futures at option expiration ($/oz)
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Profit/loss at expiration ($)
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1,000
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10,000
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5,000
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−5,000
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−10,000
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0
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1,050 1,100 1,150 1,200 1,250
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.20
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.18
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.16
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.14
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.12
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.10
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Probability
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.08
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.06
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.04
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.02
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1,300 1,350 1,400
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Long straddle
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Short straddle
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FIGURE 35.29 “Neutral/V olatile” expected Probability distribution and Profi t/loss Profi les
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for Two Alternative Neutral Strategies
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Price of August gold futures at option expiration ($/oz)
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Profit/loss at expiration ($)
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1,000
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10,000
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5,000
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−5,000
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−10,000
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−15,000
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0
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1,050 1,100 1,150 1,200 1,250
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.20
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.18
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.16
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.14
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.12
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.10
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Probability
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.08
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.06
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.04
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.02
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1,300 1,350 1,400
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Long straddle
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Short straddle |