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What Is the Maximum Loss on a Long Call Option?

The maximum loss is limited to the premium paid for the option.
Greeks.Live20.11.25

What Is the Maximum Loss on a Long Call Option?

The maximum loss on a long call option is limited to the premium paid to purchase the option. If the underlying asset price drops or stays below the strike price, the option will expire worthless, and the trader will lose the entire premium.

Unlike short positions, the risk is finite and known upfront.

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