Assertion: straddle's profit | /r/HasProperty | unlimited
Facets:
value: theoretically
type: DEGREE
value: extremely
type: DEGREE
value: on the upside
type: OTHER
value: virtually
type: MANNER
value: before expiry of the near term
type: TEMPORAL
value: for the long strangle
type: TRANSITIVE-OBJECT
value: on substantial
type: DEGREE
value: on the downside
type: OTHER
value: potentially
type: DEGREE
Source sentences:
text: The Long Straddle Has Unlimited Profit
text: Covered straddles are limited profit, unlimited risk options strategies similar to the writing of covered calls.
text: Short straddle has limited potential profit, equal to the premium received for selling both legs, and unlimited risk.
text: It is a limited profit, limited risk strategy entered by the options trader who thinks that the underlying stock price will experience very little volatility in the near term.
text: The long straddle is a suitable strategy for a volatile market, because it can make potentially unlimited profits if the price of a security moves dramatically.
text: In the case of the long straddle, the upside profit is virtually unlimited because an underlying asset can rise far above its strike price for a call option or to $0 for a put option.
text: The maximum potential profit is unlimited on the upside and very substantial on the downside.
text: If the price of the underlying security continues to rise, then the potential profit is unlimited.
text: Maximum profit is unlimited and profit is made when “Price of Underlying Security > (Strike + Price of Each Option in Leg A
text: For the long strangle, a trader’s maximum profit would be unlimited.
text: One of the benefits to a long strangle strategy is that the maximum profit is unlimited on the upside.
text: In the case of the long strangle, the upside profit is virtually unlimited because an underlying asset can rise far above its strike price for a call option or to $0 for a put option.
text: As one can see from the pros and cons of straddles that although straddles offer unlimited profit but at the same time if there is no significant movement in stock price than this strategy is of no use and that is the reason why an individual should not blindly follow others and go for straddle strategy rather one should look at risk-reward ratio of using straddle strategy than only one should use this strategy of option trading.
text: If you’re right, the potential profits are theoretically unlimited.
text: If XYZ rallies, potential profits are theoretically unlimited.
text: The loss is limited though, while the potential profits are unlimited.
text: Maximum profit is unlimited
text: The maximum profit on the upside is theoretically unlimited as there is no theoretical limit on how high a stock price can rise.
text: Maximum profit is unlimited and profit is made when “Price of Underlying Security > (Strike +
text: As we have seen earlier, long straddle offers unlimited profits at limited risks.
text: The straddle is an unlimited profit, limited risk option trading strategy that is employed when the options trader believes that the price of the underlying asset will make a strong move in either direction in the near future.
text: If the stock climbs or falls, potential profits are unlimited.
text: Long call synthetic straddles are unlimited profit, limited risk options trading strategies that are used when the options trader feels that the underlying asset price will experience significant volatility in the near term.
text: Short straddles are limited profit, unlimited risk options trading strategies that are used when the options trader thinks that the underlying securities will experience little volatility in the near term.
text: The potential profit is extremely limited.
text: Note that maximum profit is limited only on or before expiry of the near term straddle as the options trader has the option of holding on to the longer term straddle to switch to the long straddle strategy which has unlimited profit potential.
text: While the maximum profit is limited, the risk on an iron condor is also more limited than what it would be in a traditional short strangle.
text: The potential profit is extremely limited.
text: Short call synthetic straddles are limited profit, unlimited risk options trading strategies that are used when the options trader feels that the underlying asset price will experience very little volatility in the near future.