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What Is the Maximum Loss for an Option Buyer?

The maximum loss for an option buyer is the premium paid for the option contract.
Greeks.Live17.11.25

What Is the Maximum Loss for an Option Buyer?

The maximum loss for the buyer of a call or a put option is limited to the premium (price) paid to acquire the option. This is because the option holder has the right, but not the obligation, to exercise, and they will simply let the option expire worthless if the trade is unprofitable.

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