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.

- First, determine the initial investment ($).
- Next, determine the option premium ($).
- Next, gather the formula from above = MLPS = II – OP.
- Finally, calculate the Max Loss Per Share.
- 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