What Is the Maximum Loss for the Buyer of an ITM Call Option?
The maximum loss for the buyer (holder) of any Call Option, regardless of whether it is In-the-Money (ITM) or not, is limited to the premium paid to acquire the option. This is because the option grants a right, not an obligation.
If the trade moves unfavorably, the buyer can simply let the option expire worthless, losing only the initial premium.
