How Option Sellers Earn Profit
Option sellers (writers) make money very differently from buyers.
Sellers earn through:
Premium collection
Time decay (Theta) working in their favor
Market staying within a defined range
Selling gives higher probability of profit but unlimited risk if the market moves aggressively.
Example:
You sell Bank Nifty 49,000 CE at ₹220
Market stays sideways or falls
Premium collapses to ₹30
Your Profit = (220 – 30) × Lot Size
This profit results from the sold option expiring worthless.
Option sellers (writers) make money very differently from buyers.
Sellers earn through:
Premium collection
Time decay (Theta) working in their favor
Market staying within a defined range
Selling gives higher probability of profit but unlimited risk if the market moves aggressively.
Example:
You sell Bank Nifty 49,000 CE at ₹220
Market stays sideways or falls
Premium collapses to ₹30
Your Profit = (220 – 30) × Lot Size
This profit results from the sold option expiring worthless.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.