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What Is the Maximum Loss for the Seller (Writer) of a Crypto Put Option?

The maximum loss for the put seller is the strike price minus the premium received, which can be substantial.
Greeks.Live29.10.25

What Is the Maximum Loss for the Seller (Writer) of a Crypto Put Option?

The maximum loss for the seller (writer) of a crypto put option is substantial and potentially very large. The seller is obligated to buy the underlying crypto at the strike price if the buyer exercises the option.

If the crypto's price drops to zero, the seller's loss is the strike price minus the premium received. This is a theoretically large, but defined, maximum loss.

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