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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Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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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
相關出版品
免責聲明
這些資訊和出版物並非旨在提供,也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。