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What Is the Maximum Loss for the Buyer of a Call Option?

The maximum loss for a call option buyer is limited to the initial premium paid for the contract.
Greeks.Live07.11.25

What Is the Maximum Loss for the Buyer of a Call Option?

The maximum loss for the buyer of a call option is limited strictly to the premium paid for the contract. If the underlying asset's price moves unfavorably (below the strike price) or stays flat, the buyer simply allows the option to expire worthless.

They lose the initial cost of the premium, but no more, as they have no further obligation.

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