Skip to main content

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

The maximum loss for the buyer of a cryptocurrency call option is limited to the premium paid for the option. Since the option holder has the right, but not the obligation, to exercise, they will simply let the option expire worthless if the market price does not move favorably.

They cannot lose more than the initial cost of acquiring the contract.

What Is the Maximum Loss for the Buyer of a Call or Put Option?
What Is the Maximum Loss for the Buyer of a Crypto Call Option?
What Is the Maximum Loss for the Buyer of an ITM Call Option?
What Is the Risk-Reward Profile of a Protective Put versus a Covered Call?