Buy Call Option Sell Put Option -

: Theoretically unlimited, as there is no cap on how high a stock's price can rise.

: Since you are both long and short an option with the same terms, the effects of time decay (theta) and implied volatility (vega) usually offset each other. Variations buy call option sell put option

: Calculated as the Strike Price + Net Debit paid (or minus net credit received). : Theoretically unlimited, as there is no cap

: Because the premium received from selling the put offsets the cost of buying the call, the initial capital outlay is much lower than buying 100 shares of the stock. : Theoretically unlimited