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REDDIT

What’s the max you can earn on put options?

D
Apr 6, 2025 · 03:04

So, I know that since stock prices can keep going up, the max you can earn on a call option is uncapped.

For put options, since stock prices can’t go below $0, does this mean we are capped in our profit?

So, say I bought put option for $1 for stock priced at $10. Then, the max I can make is if stock goes to $0, so I’ll make $10?