if i am bullish i can buy call option to make unlimited profit and limited loss (limited to pemium) rather writing a put option to make limited profit (premium) and unlimted loss or else to put it in other way
if u are bearish you can buy put option for unlimted profit at a risk of premuim but y you are wrting a call option and expsoing yourself to unlimited loss ?
… why call/put writers exist in the market …
Check this post on basics of option writing
Between 70 to 95% of all options usually expire worthless. What this means is that by buying an option (calls or puts) the odds of losing are significantly more. Now the question is if options buyers are inherently taking a higher risk, who is on the other side of the trade with better odds of winning? The answer is “Option Writers”
At support put are written and at resistant call are written. Contract expires between support and resistance and writer took all the money. We the speculators buy and sell call/put someone make profit someone loss money. But writtets mostly make money…