Max Profit
The maximum profit a position can achieve under its payoff structure.
Explanation
Defined-reward trades have a capped maximum gain, while some structures (like long calls) can have uncapped upside. Knowing max profit helps assess return potential versus required capital and max risk. Realized results can differ due to execution, early exit, and assignment.
Example
A debit spread with $5 width entered for $2.00 has max profit of $3.00 per share, or $300 per contract.