When Do Short Options Reach Maximum Profit on Pluang?

The maximum profit on short options on Pluang is capped at the full premium you collected when you sold the contract, and you reach it when the underlying asset's price stays on the favorable side of the strike price all the way through the expiry date — below the strike for a short call, above the strike for a short put — so the contract's value decays down toward zero as expiry approaches. In this scenario the buyer has no incentive to exercise, since exercising would only cost them money. On Pluang's expiry day, an open position like this is not simply left to expire untouched: Pluang force-closes any remaining open options position roughly one hour before market close, so the seller's profit is locked in through that closure rather than through a passive cash-settlement event. One exception applies — because Pluang's options are American-style, the buyer can exercise at any time before expiry, so an early assignment triggered by a temporary swing against your strike can end the position before you collect the full premium.

• Short call max profit. You sold the right for someone to buy the underlying from you at the strike price. Maximum profit is reached if the underlying trades at or below the strike through expiry — the option has no value for the buyer to exercise, and you keep the entire premium received when you opened the position.
• Short put max profit. You sold the right for someone to sell the underlying to you at the strike price. Maximum profit is reached if the underlying trades at or above the strike through expiry — again, the buyer has no reason to exercise, and you keep the full premium.
• Profit is capped; loss is not, in the same way. Maximum profit on either short position is fixed at the premium collected and cannot exceed it, no matter how favorably the underlying moves. Maximum loss is the opposite story: a short call carries loss potential that grows as the underlying keeps rising with no fixed ceiling, while a short put's loss is bounded but can still be substantial, since the underlying's price cannot fall below zero.
• How the force-close mechanic fits in. Rather than passively waiting for the market to close on expiry day, Pluang closes out any remaining open options position around one hour before the close. If your short position is deep enough on the favorable side of the strike that it is trading near zero value at that point, the force-close effectively realizes your maximum profit for you — you do not need to manually buy to close to capture it.
• Early assignment can cut the outcome short. Because Pluang's options are American-style, a buyer can exercise before expiry, not only on it. If the underlying moves through your strike at any point during the contract's life — even temporarily — your short position could be assigned early, ending the trade before time decay has a chance to bring the option to zero and before you collect the full premium.

Related questions:

Q: What's the difference between max profit on a short call and a short put on Pluang?
The direction of the favorable move is reversed, but the mechanics are the same. A short call reaches maximum profit when the underlying stays at or below the strike through expiry; a short put reaches it when the underlying stays at or above the strike. In both cases, the option loses value as expiry nears, the buyer has no reason to exercise, and you as the seller keep the full premium you originally collected.

Q: Is maximum profit on a short option guaranteed if I just hold the position to expiry on Pluang?
No — holding to expiry does not guarantee it. Because Pluang's options are American-style, the buyer can exercise any time before expiry, so a temporary move through your strike earlier in the contract's life can trigger early assignment and end your position before the premium fully decays. Market volatility between now and expiry can also work against you at any point along the way.

Q: How does Pluang's force-close at expiry affect my short option's profit?
Pluang closes out any position still open roughly one hour before market close on expiry day, rather than letting it run to a passive cash-settlement at the final bell. If your short position is favorably positioned and near-worthless at that point, this closure effectively locks in your maximum profit without requiring you to manually buy to close beforehand. If it is still in-the-money instead, the close crystallises whatever loss the position carries at that moment.

Q: What's the maximum loss on a short option, compared to its capped maximum profit?
The two are asymmetric. Maximum profit on a short position is always capped at the premium you received, however far the underlying moves in your favor. Maximum loss is not capped the same way — a short call's potential loss grows as the underlying rises with no fixed ceiling, while a short put's loss, though bounded by the underlying's price floor of zero, can still be many times the premium collected.