Profit Range(redirected from Profit Ranges)
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.
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.
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.