Part 6 Learn Institutional Trading

Buyers vs. Sellers
Option Buyers

Pay premium.

Limited risk (premium only).

Unlimited reward potential.

Low probability of profit (because time decay erodes premium).

Option Sellers (Writers)

Receive premium.

Limited profit (premium only).

Can face huge losses.

High probability of profit (because time decay works in their favor).

Professional traders often prefer selling options, but with strict risk management.