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

The maximum profit for the seller (writer) of a call option is limited to the premium received from the buyer. If the option expires worthless (out-of-the-money), the seller keeps the entire premium.

If the option is exercised, the seller's profit is the premium received minus any loss incurred from the obligation (for a naked call) or the difference between the strike price and the cost basis (for a covered call).

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