Part 12 Trading Master Class

Buyers vs Sellers

Every option contract has two sides:

Option Buyer

Pays a premium.

Has limited risk (only premium loss).

Has unlimited profit potential.

Needs significant price movement to make money.

Option Seller/Writer

Receives the premium.

Has limited profit (premium received).

Has high or unlimited risk.

Benefits when price stays stable or moves slightly.

Most professional traders prefer selling options because time works in their favour.