Can you lose extra money in options if your in the red and you sellout or it expires? Or just what you paid for the contract? (calls & puts)
Maximum loss is the premium you paid. BUT ...... Beware on expiry day and close any positions that might close ITM. You do not want to deal with auto exercise
In general, when you buy options, your losses are limited to the debit you've paid. However... Let's say you've bought the 100 call in ABC for $3 - so theoretically, your max loss is $300. Right before expiration, ABC is at 99, so you say "ah, screw it!" and walk away from your screen... and ABC rallies to just a penny over your strike half a second before the close. While you drink yourself into a tearful stupor over your terrible, awful, no-good loss, your broker is - unbeknownst to you - doing you a favor: auto-exercising your ITM call. Yay! $10k is drawn from your account, and you're assigned a long position in ABC, to the tune of 100 shares. ...except that over the weekend, ABC's approval for their main drug is withdrawn by the FDA, their CEO is caught on video doing weird things with hamsters, and their production facility is found to be contaminated with radioactive LSD made by Russian hookers who are also subverting our elections. As a result, ABC stock drops to $1 before the next open, and your losses are... just a bit more than $3. So yes, you can lose more than your debit.