Option Strategies with Limited Loss and Unlimited Profit
This is a list of option strategies which have limited risk (limited maximum loss) and unlimited potential profit. Typical examples are long straddle, long strangle, or long call. See also option strategies with limited risk and limited profit and strategies with unlimited risk. **The List.** **Strategy Groups with Unlimited Profit.** Many strategies in the above list are quite similar. In fact, we [more ...]
Option Strategies with Limited Loss and Limited Profit
This is a list of option strategies which have limited risk (limited maximum possible loss) and limited potential profit. Typical examples are vertical spreads or ladders. See also option strategies with limited loss and unlimited profit and strategies with unlimited loss and limited profit. **The List.** **Strike Distance and Maximum Loss Size.** Note that limited risk does not always mean small risk. [more ...]
Option Strategies with Unlimited Loss and Limited Profit
An option strategy has unlimited loss if it is net short call options or underlying. The theoretically unlimited loss occurs on the upside (when underlying price gets infinitely high). This list assumes underlying price can't be negative, which is the case with most underlying assets. Therefore, strategies whose maximum loss occurs at zero underlying price (net short puts, net long underlying) are [more ...]