Power options can lead to very high leverage and thus entail potentially very large losses for short positions in these options. It is therefore common to cap the payoff. The maximum payoff is set to some predefined level C. The payoff at maturity for a capped power call is min . Esser (2003) gives the closed-form solution: (via "The Complete Guide to Option...
![WMT: Capped Standard Power Option [Loxx]](https://s3.tradingview.com/n/ndzulKRE_mid.png "Capped Standard Power Option [Loxx]")
