BUYING or SELLING? Which Options Strategy is better?
▲ 15Open IV vs HV →
When buying options, you pay a premium to gain the right, but not the obligation, to buy or sell an underlying asset at a set price within a specific time frame, while selling options means you receive a premium by giving someone else that right, exposing yourself to potential unlimited losses if the market moves against you; essentially, option buyers have limited risk to the premium paid, while option sellers have potentially unlimited risk depending on market movement.
SPEAKERDharmendra RajbharTrainer
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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