What is the maximum loss on an option I have bought?

This is the key advantage of buying options vs futures — defined maximum risk. But remember, while the loss is capped, the probability of total loss is high for far OTM options near expiry.

The maximum loss for an option BUYER is always limited to the premium paid. If you paid ₹50 for an option and it expires worthless, you lose only ₹50 per share (×lot size).