Chapter 06 · Section 6.1

Profit Potential

Write Puts
Market Outlook   :  BULLISH
Profit Potential :
Loss Potential   :     
Breakeven Point  :

By writing puts, profit potential is:

a) unlimited.
No. The investor receives a premium for incurring the obligation to deliver. He profits if he is not asked to fulfill that obligation (or if he is able to offset and close his position for a profit).
b) limited.