Chapter 06 · Section 6.1

Profit Potential

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

The investor's profit potential is:

b) limited.
Yes. If the market remains stable, traders long out-of-the-money calls or puts will let their options expire worthless. Writers of these options will not have be called to deliver and will profit from the sum of the premiums received. Continue