# What Is the Maximum Loss on a Long Call Option? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

---

## 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.

- [What Is the Maximum Loss for a Buyer of a Call Option?](https://learn.greeks.live/path/what-is-the-maximum-loss-for-a-buyer-of-a-call-option/)

- [Why Is the Maximum Loss for a Long Call Option Limited to the Premium Paid?](https://learn.greeks.live/path/why-is-the-maximum-loss-for-a-long-call-option-limited-to-the-premium-paid/)

- [What Is the Concept of Limited Risk for an Option Buyer?](https://learn.greeks.live/path/what-is-the-concept-of-limited-risk-for-an-option-buyer/)

- [How Does a Stop-Loss Order Differ from the Maximum Loss of an Options Buyer?](https://learn.greeks.live/path/how-does-a-stop-loss-order-differ-from-the-maximum-loss-of-an-options-buyer/)

- [What Is the Maximum Loss for a Call Option Buyer?](https://learn.greeks.live/path/what-is-the-maximum-loss-for-a-call-option-buyer/)

- [How Does the Profit Profile of a Long Call Option Compare to a Short Put Option?](https://learn.greeks.live/path/how-does-the-profit-profile-of-a-long-call-option-compare-to-a-short-put-option/)

- [Why Is the Maximum Loss on a Long Call Option Premium-Limited?](https://learn.greeks.live/path/why-is-the-maximum-loss-on-a-long-call-option-premium-limited/)

- [What Is the Concept of “Limited Risk” in Options Buying?](https://learn.greeks.live/path/what-is-the-concept-of-limited-risk-in-options-buying/)

## Glossar

### [Underlying Asset Price](https://learn.greeks.live/area/underlying-asset-price/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Valuation ⎊ The underlying asset price in cryptocurrency derivatives represents the current market consensus of an asset’s worth, serving as the foundational input for pricing options and futures contracts.

### [Long Call Option](https://learn.greeks.live/area/long-call-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Derivative ⎊ A long call option, within the cryptocurrency context, represents a financial derivative granting the holder the right, but not the obligation, to purchase an underlying digital asset at a predetermined price (the strike price) on or before a specific date (the expiration date).

### [Maximum Loss](https://learn.greeks.live/area/maximum-loss/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Value ⎊ Maximum Loss represents the absolute worst-case financial outcome, expressed as a specific monetary value, that a derivatives position can incur over its entire life cycle.

### [Long Call](https://learn.greeks.live/area/long-call/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Position ⎊ A Long Call represents the outright purchase of a call option, granting the holder the right to buy the underlying crypto asset at a specified strike price before expiration.

## Discover More

### [Why Is the Maximum Loss on a Long Call Option Premium-Limited?](https://learn.greeks.live/path/why-is-the-maximum-loss-on-a-long-call-option-premium-limited/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Is the Maximum Loss on a Long Call Option Premium-Limited?](https://learn.greeks.live/wp-content/uploads/2025/10/Segmented-Biphasic-Pharmaceutical-Casing-Represents-Asymmetric-Risk-In-Decentralized-Finance-Options-Pricing.webp)

The option holder has a right, not an obligation, so the maximum loss is only the non-refundable premium paid.

### [What Is the Maximum Loss for a Naked Short Option Position?](https://learn.greeks.live/path/what-is-the-maximum-loss-for-a-naked-short-option-position/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Maximum Loss for a Naked Short Option Position?](https://learn.greeks.live/wp-content/uploads/2025/10/Interlocking-Digital-Asset-Hedging-Mechanisms-Illustrating-Margin-Call-Dynamics-In-Decentralized-Finance.webp)

Naked short Call loss is theoretically unlimited; naked short Put loss is limited to the strike price minus the premium received.

### [What Is the Maximum Profit and Maximum Loss for a Protective Put Strategy?](https://learn.greeks.live/path/what-is-the-maximum-profit-and-maximum-loss-for-a-protective-put-strategy/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Maximum Profit and Maximum Loss for a Protective Put Strategy?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptual-Visualization-of-Near-Term-In-The-Money-Option-Expiry-Against-Blockchain-Infrastructure-Throughput.webp)

Max Profit: Unlimited. Max Loss: Limited to (Asset Purchase Price - Put Strike Price) + Put Premium Paid.

### [Does Contango Favor Long or Short Futures Positions for a Long-Term Strategy?](https://learn.greeks.live/path/does-contango-favor-long-or-short-futures-positions-for-a-long-term-strategy/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does Contango Favor Long or Short Futures Positions for a Long-Term Strategy?](https://learn.greeks.live/wp-content/uploads/2025/10/Layered-Color-Bands-Representing-Stochastic-Volatility-Surface-Dynamics-and-Dual-Asset-Moon-Concepts.webp)

It favors a long-term short futures position due to the positive roll yield generated from continuous rollover.

### [How Does the Call's Strike Price Determine the Maximum Profit Potential?](https://learn.greeks.live/path/how-does-the-calls-strike-price-determine-the-maximum-profit-potential/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Call's Strike Price Determine the Maximum Profit Potential?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Construct-Modeling-Complex-Volatility-Surface-Through-Spherical-Asset-Core.webp)

The call strike price acts as the profit ceiling; maximum profit is the difference between the call strike and the asset cost, plus net premium.

### [What Is the Maximum Potential Loss in a Short-Gamma Position with No Other Greeks Considered?](https://learn.greeks.live/path/what-is-the-maximum-potential-loss-in-a-short-gamma-position-with-no-other-greeks-considered/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Maximum Potential Loss in a Short-Gamma Position with No Other Greeks Considered?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Representation-of-Multi-Asset-Digital-Collateralization-Frameworks-and-Strike-Price-Mechanisms.webp)

The maximum potential loss is theoretically unlimited for a short call and substantial (up to the strike price) for a short put.

### [What Is the Maximum Loss When Buying a Call Option?](https://learn.greeks.live/path/what-is-the-maximum-loss-when-buying-a-call-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Maximum Loss When Buying a Call Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Engineering-of-Digital-Asset-Futures-Contract-Settlement-Mechanism-Visualization.webp)

The maximum loss when buying a call option is limited to the premium paid for the contract, as there is no margin or liquidation risk.

### [What Is the "Margin Call" Risk for the Long Underlying Asset?](https://learn.greeks.live/path/what-is-the-margin-call-risk-for-the-long-underlying-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the "Margin Call" Risk for the Long Underlying Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Custody-Mechanism-Exploding-Open-Revealing-Interlocking-Arbitrage-Engines.webp)

The risk is that the underlying asset, if purchased on margin, drops in value, triggering a margin call from the broker.

### [What Is the Maximum Loss on a Covered Call?](https://learn.greeks.live/path/what-is-the-maximum-loss-on-a-covered-call/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Maximum Loss on a Covered Call?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Depiction-of-Implied-Volatility-Measurement-Through-Financial-Derivative-Clock-Mechanisms.webp)

The asset's purchase price minus the premium received; the loss is realized if the asset's price falls below the net cost basis.

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