Option Buyer vs Option Seller
Option Buyer
Pays premium
Risk is limited to premium
Profit potential is unlimited (for call) or large (for put)
Needs a strong directional move
Time decay works against the buyer
Option Seller
Receives premium
Risk can be unlimited (if market moves sharply)
Profit is limited to premium received
Benefits from sideways market
Time decay works in seller’s favour
Option sellers usually need more capital because of higher risk.
Option Buyer
Pays premium
Risk is limited to premium
Profit potential is unlimited (for call) or large (for put)
Needs a strong directional move
Time decay works against the buyer
Option Seller
Receives premium
Risk can be unlimited (if market moves sharply)
Profit is limited to premium received
Benefits from sideways market
Time decay works in seller’s favour
Option sellers usually need more capital because of higher risk.
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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
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
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
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.