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What Is the Maximum Loss When Buying a Put Option?

The maximum loss is limited precisely to the premium paid for the option contract.
Greeks.Live29.10.25

What Is the Maximum Loss When Buying a Put Option?

The maximum loss for the buyer of a put option is limited to the premium paid for the contract. If the underlying crypto price rises, or stays above the strike price, the option will expire worthless, and the buyer loses only the premium.

This defined, limited risk is a key advantage of buying options.

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