Chapter 06 · Section 6.1

Profit Potential

Market Outlook   :  VOLATILE
Profit Potential :
Loss Potential   :
Breakeven Point  :

• a) unlimited.
  Yes. If the market is volatile, the trader can profit from an up- or downward movement by exercising the appropriate option while letting the other option expire worthless. (Bull market, exercise the call; bear market, the put.) Continue
  b) limited.

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