Assertion: straddle's profit | /r/HasProperty | limited to the premium
Facets:
Source sentences:
text: The profit is limited to the premium received from the sale of put and call.
text: This strategy involves unlimited risk, as one may lose up to entire value of the security in case of sale of both options, but profit will be limited to the premiums received on both options.
text: A risk for holder of a short straddle position is unlimited due to the sale of the call and the put options which expose the investor to unlimited losses (on the call) or losses limited to the strike price (on the put), whereas maximum profit is limited to the premium gained by the initial sale of the options.