## Futures options max loss

The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. The profit and loss of an option position at expiration is a function of the original premium and the difference in price between the futures contract and the strike price of the option. Suppose you sell the 105 call for \$2 in premium. The maximum profit potential for this trade is \$2.

Similarly, if Mike were to take a loss on an option and buy another option of the same underlying stock, the loss would be added to the premium of the new option. Let’s say you can buy or write 10 call option contracts, with the price of each call at \$0.50. Each contract typically has 100 shares as the underlying asset, so 10 contracts would cost \$500 (\$0.50 x 100 x 10 contracts). If you buy 10 call option contracts, you pay \$500 and that is the maximum loss that you can incur. There are two types of option and their volitality of losses are same - 1. Call Option 2. 1. If you are buying the call option maximum loss is premium paid 2. If you are selling the call option the losses are unlimited 3. Put Option 4. 1. If you a Options Profit Calculator. Options Profit Calculator provides a unique way to view the returns and profit/loss of stock options strategies. If June Crude Oil futures is trading at \$30 on delivery date, then the long futures position will suffer a loss of \$10 x 1000 barrel = \$10000 in value.