A long call cannot lose more than its premium, at expiry or before it
For an option you bought, no. The most a buyer can lose on the option is the premium paid, plus charges. The chart shows the at the money call bought on 10 Jun 2026: its loss never goes beyond the premium paid, at expiry or with time left.
The reason is the buyer's right. An option gives the buyer a right, not an obligation, so the buyer can let it lapse when the trade goes against them. The seller has the reverse position: an obligation, and a loss that keeps growing as the index moves. The chart for a seller is the mirror image of this one, with no cap on the loss.
Holding to expiry is allowed. Index options are cash settled, so one in the money at expiry pays its intrinsic value in cash, and one out of the money expires worthless. Time value is zero at expiry, so a buyer who holds to the end gives up whatever time value was left.
Stock options differ. One in the money at expiry settles by delivery of shares, so the buyer then has to pay for the shares, or deliver them for a put. That is a separate obligation, larger than the premium. The question on physical settlement explains it.
Charges apply whatever the result. Brokerage and exchange charges come on each trade, and STT applies on an option sale and on exercise. The premium is the most that can be lost on the option itself, and the charges come on top.
Before you trade. Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. Read the SEBI study