Selling Options Vs Buying Options Here
: You are Short Theta (time is your enemy) and Long Gamma (you benefit from explosive price moves). Selling Options (Short Premium)
At its simplest, buying an option is like purchasing a lottery ticket with a better shot at winning, while selling an option is like acting as the casino . Buyers pay a premium for the chance at a huge payout, whereas sellers collect that premium upfront and hope nothing exciting happens. Buying Options (Long Premium) selling options vs buying options
: Theoretically unlimited for call buyers, as there’s no ceiling on how high a stock price can go. : You are Short Theta (time is your
Selling an option (also called "writing") means you take on the to trade if the buyer chooses to exercise their right. selling options vs buying options