Option Buyer
Definition
The purchaser of an options contract who pays the premium for the right (but not obligation) to buy or sell the underlying asset at the strike price before or at expiration.
Example
An option buyer pays $3 per contract for a call option and has maximum risk equal to that $3 premium paid.
Related Terms
Frequently Asked Question
What is an Option Buyer?
An option buyer pays premium for the right to buy (call) or sell (put) the underlying at the strike price. Maximum loss is limited to premium paid; profit potential is theoretically unlimited for calls.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.