Both a synthetic call and a long call have the
same unlimited profit potential since there is no ceiling on the price appreciation of the underlying stock.
Essentially, if the stock goes up, you have
unlimited profit potential (less the cost of the put options), and if the stock goes down, the put goes up in value to offset losses on the stock.
You have to give up the notion of «
unlimited profit potential» in a trade.
When you trade market direction using futures or forex, you have
unlimited profit potential.
The butterfly and straddle also involve multiple legs; however, the straddle has
unlimited profit potential.
And why we don't make promises like «
unlimited profit potential.»
True, this means you give up the «
unlimited profit potential» some people talk about.