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What Is the Maximum Loss a Buyer of a Put Option Can Incur?

The maximum loss for a Put Option buyer is the premium paid for the option, as the right to sell is not exercised.
Greeks.Live06.11.25

What Is the Maximum Loss a Buyer of a Put Option Can Incur?

The maximum loss a buyer of a Put Option can incur is limited to the premium paid to acquire the option. If the underlying asset's price rises or stays above the strike price, the option will expire worthless, and the buyer loses the premium.

Unlike the seller, the buyer has limited risk but unlimited potential profit down to a price of zero for the asset.

What Is the Premium Paid for an Option Contract?
Why Is the Loss Limited to the Premium for the Option Buyer?
What Is the Maximum Loss for the Buyer of a Call Option?
What Is the Maximum Loss for the Buyer of a Call or Put Option?

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