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What Is the Maximum Loss Potential for a Short Call Option?

Theoretically unlimited, as the underlying asset's price can rise indefinitely.
Greeks.Live20.11.25

What Is the Maximum Loss Potential for a Short Call Option?

The maximum loss potential for a short call option is theoretically unlimited. Since the price of the underlying asset can rise indefinitely, the writer of the call option is obligated to sell the asset at the strike price, regardless of how high the market price goes.

The loss is the difference between the market price and the strike price, minus the premium received.

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