Can you lose more than you invest in options?
It depends entirely on whether you are buying or selling the option. If you buy a call or a put, no — your maximum loss is the premium you paid, and not a cent more. The option can expire worthless, but it can never turn into a debt.
Selling options is different. If you sell a naked (uncovered) call, your loss is theoretically unlimited, because the stock can rise without limit. A naked put can lose all the way down to the stock reaching zero. That is why brokers gate uncovered selling behind the highest approval level.
The middle ground is defined-risk strategies. A spread — where you buy one option to cap the one you sold — limits your maximum loss to a known amount up front. For most beginners, buying options or trading defined-risk spreads means you always know your worst case before you enter.
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