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What Is the Maximum Profit for a Seller of a Naked Call Option?

The maximum profit for a seller of a naked call option is limited to the premium received upfront. Since the seller is not holding the underlying asset (naked), they are exposed to potentially unlimited loss if the asset price rises significantly above the strike price.

The premium is the only cash inflow, and it is retained regardless of the asset's price movement, provided the option is not exercised or closed out at a loss.

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