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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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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해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
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
관련 발행물
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.