Skip to main content

What Is the Maximum Profit for the Writer of Any Option Contract?

The maximum profit for the writer (seller) of any option contract, whether a call or a put, is always limited to the premium received upfront from the buyer. Once the premium is collected, that is the most the writer can earn.

If the option expires worthless, the writer keeps the entire premium as profit.

What Is the Maximum Profit Potential of a Covered Call?
Why Is the Collar Strategy Considered a Limited-Risk, Limited-Reward Structure?
What Is the Potential Profit for an Option Writer?
What Is the Maximum Loss for the Buyer of a Call Option?