Gold Spot / U.S. Dollar
Education

Part 1 Intraday Trading Master Class

14
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.

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