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What Is the Risk If an OTM Option Expires OTM?

The buyer loses the entire premium paid.
Greeks.Live22.11.25

What Is the Risk If an OTM Option Expires OTM?

If an Out-The-Money (OTM) option expires OTM, the buyer loses the entire premium paid for the option contract. The option expires worthless, and the seller retains the premium as profit.

This is the maximum loss for the option buyer.

What Is the Net Premium Received or Paid When Establishing a Zero-Cost Collar?
Why Is the Maximum Loss for an OTM Option Buyer Limited to the Premium Paid?
How Does the Option’s Premium Relate to the Concept of Maximum Loss for the Buyer?
What Is the Maximum Loss a Buyer of a Put Option Can Incur?

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