Profit Range

Profit Range

The range within which a particular position makes a profit. Generally used in refernce to strategies that have two break-even points - an upside break-even and a downside break-even. The price range between the two break-even points would be the profit range.

Profit Range

The total universe of possible profits. With many investments, potential profit (and/or loss) is unlimited; that is, an investment theoretically could gain (and/or lose) an unlimited amount. With some option strategies, however, profit is limited to a certain, finite set. In such a case, calculating the profit range is useful.

profit range

The range of potential profitable outcomes that result from a given investment position. Profit range is used extensively in putting together complicated option strategies in which gains or losses or both are limited to an established level.
References in periodicals archive ?
Overall risks of each class are quantified and assigned a specific profit range.
Numis analyst Matthew Taylor said that as the warmer weather continued during parts of October he does not think Next will hit its 10% thirdquarter sales guidance, leading to a reduction in its annual profit range.
Next is banking on temperatures plunging soon, but added: "If this unusually warm weather continues for the duration of October then we are likely to lower our full-year profit range of PS775million to PS815m.
It's time when buy Next are banking on temperatures plunging soon but added: "If this unusually warm weather continues for the duration of October, then we are likely to lower our full-year profit range of PS775million to PS815million.
Ryanair "now expects the full-year outturn will be at the lower end of its full-year net profit range of 570-600 million euros ($750-790 million)", it said in a statement.
Halfords lowered its profit range for the year to pounds 124m to pounds 127m, down from pounds 127m to pounds 135m, while Carpetright said profits for the year to April 30 were likely to be no better than that achieved in the 2008-09 financial year.
The fifth row on Table 2 shows the percent of games in which the observed fraction of bets on the favorite fell inside the certain profit range in the 2005-2007 NFL seasons.
Bank of Cyprus Group's profit after tax for 2009 reached EUR313 mln, while return on equity was maintained at 14,0%, in line with Management's forecasted profit range of EUR 300-400 mln, but below analyst forecasts of EUR 330 mln.
The high end of the profit range was previously $1.
Apply the CPM to identify the excess profit range generated by use of the tested intellectual property.
This implies that not even one of the 40 partners pursued a strategy to drive the profit outcome as high as possible in the current period, and hence the theoretical upper bound of the profit range was never encountered at any stage of their selections.
Fitch also views the firm's upward revision of its normalized profit range for packaged meats positively.