Who Wins More—Option Buyers or Sellers?
Option buyers have limited risk and unlimited reward, but their probability of success is lower because:
Time decay works against them.
They need strong directional movement within a short time.
Option sellers (writers) have limited profit but higher probability of winning because:
Time decay works in their favor.
Markets stay range-bound more often than they trend strongly.
Thus, professional traders often prefer option selling strategies like:
Iron condor
Straddle
Strangle
Credit spreads
Covered calls
Retail traders, on the other hand, prefer buying options due to lower capital requirements.
Option buyers have limited risk and unlimited reward, but their probability of success is lower because:
Time decay works against them.
They need strong directional movement within a short time.
Option sellers (writers) have limited profit but higher probability of winning because:
Time decay works in their favor.
Markets stay range-bound more often than they trend strongly.
Thus, professional traders often prefer option selling strategies like:
Iron condor
Straddle
Strangle
Credit spreads
Covered calls
Retail traders, on the other hand, prefer buying options due to lower capital requirements.
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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
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.