: What’s the max loss on a call/put options contract? I know what a call/put is but is the max loss the contract premium?
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>I know what a call/put is but is the max loss the contract premium?
Yes, this is what an option really does compared to going long and short. When buying an option compared to going long or short, really what you buy is less risk in capital in exchange for more risk in time (theta decay).
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