<ul><li>A call option on a stock can only lose the premium paid to buy it, providing a floor to losses and unlimited upside potential.</li><li>Options have an expiry date which limits the upside movement potential, but traders take directional bets based on their analysis.</li><li>The asymmetric payoff factor ensures that the maximum loss on a call option is limited to the premium paid, while gains can be greater.</li><li>The asymmetric effect shows that for a given change in the underlying price, a call option can lose more value than it can gain due to factors like delta and theta.</li></ul>

Mastering Derivatives: Asymmetric payoff, asymmetric risk in options

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