Enter the initial investment ($) and the option premium ($) into the Calculator. The calculator will evaluate the Max Loss Per Share. 

Max Loss Per Share Formula

MLPS = II - OP

Variables:

  • MLSP is the Max Loss Per Share ($)
  • II is the initial investment ($)
  • OP is the option premium ($)

To calculate Max Loss Per Share, subtract the option premium from the initial investment.

How to Calculate Max Loss Per Share?

The following steps outline how to calculate the Max Loss Per Share.


  1. First, determine the initial investment ($). 
  2. Next, determine the option premium ($). 
  3. Next, gather the formula from above = MLPS = II – OP.
  4. Finally, calculate the Max Loss Per Share.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

initial investment ($) = 200

option premium ($) = 40