What is the maximum possible loss for the buyer of a standard call option?

The maximum possible loss for the buyer of a standard call option is the premium paid for the option.

A call option gives its buyer the right, but not the obligation, to purchase an underlying asset at a specified strike price before or at an expiration date, depending on the contract style. The buyer pays the premium to obtain that right. If the asset never rises enough to make exercising or selling the option worthwhile, the option can expire worthless, limiting the buyer’s loss to the premium.

For a call buyer to profit at expiration, the underlying price generally must exceed the strike price by more than the premium paid, ignoring commissions and other costs. The amount by which the price must rise is called the breakeven point.

This limited-loss feature does not mean options are low-risk. Options can lose most or all of their value quickly, and sellers face different risk profiles. A standard equity option contract commonly represents 100 shares, so the quoted premium is typically multiplied by 100.