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
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; substantial on the
Limited to the total premiums paid for both options. Theoretically unlimited on the upside
You buy one call and one put with identical strikes (usually "at-the-money") and the same expiration date.