Theoretically unlimited on the upside; substantial on the downside (capped only when the stock hits zero).
Profit from a major price swing or a surge in market volatility. buying a call and a put at the same strike
Limited to the total premiums paid for both options. Theoretically unlimited on the upside; substantial on the
Buying a call and a put at the same strike price and expiration date is called a . This is a "market-neutral" strategy, meaning you don't care if the price goes up or down, as long as it moves significantly. Strategy Overview Theoretically unlimited on the upside
You buy one call and one put with identical strikes (usually "at-the-money") and the same expiration date.