Option Buying Vs Option Selling

Option Buyer Vs Option seller

What is the question? :thinking:

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Pros and Cons of Option Buyer And Seller

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I have just started learning, so I cannot give any answers. But from what I know so far, selling needs more capital and also has more risk, unlimited risk, and buying requires small capital and has limited risk, maximum risk, and selling has more chance of winning than buying, but there are certain things which one could do with buying and increase the chance of winning.

What has been your experience? You must have taken some trades, so what was your experience?

Biggest hurdle i found is implementation, to implement the system which you made

I have not done any option selling, so my view maybe weak


• limited time >> proper implementation of system becomes difficult >> getting into wrong trade.


• System is more static, so easy to implement

• sufficient time to implement

These are my views

Are you talking about intraday or having positions till expiry?


Why no position? Why only intraday?

It seems scary, those gapup and gap downs and i have little experience

Jeena hai to marna seekho, paana hai to khona seekho, munafa chahe to nuksaan lena seekho :grin:


So BN, buying, intraday.

And you are using indicators on BN?

Yes, like MAs, volume, trend lines. Do you do intraday nowadays?

No, it has been many days. As market is not falling by 1.5-2% regularly, I am not doing. I like shorting, I don’t exactly remember, but I think I found shorting relatively easy than going long. So if the market falls big, I will try it again.

Of course, the quick moves are not easy to handle. I don’t feel sad if an investment over the course of a couple of years, gives 30% loss, but even a 2% loss in 1 hour makes me feel sad. It is one of the things I am yet to take in completely :roll_eyes:

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Option buyer need to get the direction right - the change in delta should be more than the decay of theta (time decay)

Option seller has 2 advantages - theta & vega. So if you are neutral in direction & has a view that implied volatility will cool down or not spike up then selling will benefit you.

If you are still not sure - go for debit spread (option buying simulation) or credit spread (option selling simulation) and see how the delta, theta and vega will change


Key thing to note :

Both option buying and selling are leveraged instruments. It might seem like option buying is not. But, in reality - it is still a leveraged instrument.

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IMO best to do both ‘Defined risk short options’ and ‘long options’ - as separate strategies using different brokers.

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