Why it is better for a bearish to write a call option for limited profit or unlimited loss instead of buying put option for unlimited profit or limited loss?


It is estimated that 75 to 90 % of the options written expire worthless without incurring any loss for the option writer. So selling options is a better proposition than buying them - provided the option writer manages the risk properly.

For me, TIME will decide, if I BUY a PUT or SELL a CALL.

If it is Start of series, i will go the buying PUT.

If it is 2nd half of series, I will go with CE writing.

Answer by Ravi is also true !!!