Buyers vs Sellers in Option Trading
Option trading has two sides: buyers and sellers (writers).
Option Buyer
Pays a premium
Risk is limited to the premium paid
Profit potential can be unlimited (for calls)
Needs strong price movement in the expected direction
Option Seller
Receives the premium
Profit is limited to the premium received
Risk can be unlimited (especially in naked positions)
Benefits from time decay and sideways markets
This buyer-seller dynamic makes options a zero-sum game, where one side’s gain is the other’s loss.
Option trading has two sides: buyers and sellers (writers).
Option Buyer
Pays a premium
Risk is limited to the premium paid
Profit potential can be unlimited (for calls)
Needs strong price movement in the expected direction
Option Seller
Receives the premium
Profit is limited to the premium received
Risk can be unlimited (especially in naked positions)
Benefits from time decay and sideways markets
This buyer-seller dynamic makes options a zero-sum game, where one side’s gain is the other’s loss.
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Details:
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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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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.