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           LONG CALL   SHORT CALL   LONG PUT    SHORT PUT

Profit potential Unlimited limited practically unlimited unlimited* Risk of loss limited Unlimited limited practically unlimited *

This information is useful to keep in mind when deciding upon an appropriate strategy. For the put, we use the expression practically unlimited" because the profit (long put) or loss potential (short put) is limited to the exercise price minus the premium because the price of the underlying cannot fall below zero.