Profit Range

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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 ?
In normal days the profit ranges between SR200 to SR2, 600.
The IRS has specifically requested comments with respect to (i) the possibility of creating "safe harbor" profit ranges constructed by reference to pre-established benchmark standards such as published rates of return on assets (ROA), (ii) the recognition of PLIs other than those identified in the proposed rules, and (iii) the treatment of lump-sum payments.
We believe the WA&D Services quarterly profit ranges given to the investment community in August are realistic for 2008, and we should be somewhat less than this range in the fourth quarter of 2007.
Each of the Company's business segments enjoyed double-digit percentage sales growth in the third quarter, led by the Power Generation and Distribution businesses, both of which performed above the top end of their targeted sales and profit ranges.
The market, which reports its profits three years in arrears, said Monday that, based on the syndicates' forecast profit ranges, the market in aggregate is destined to make losses of 0.