Selling Options Vs Buying Options -

: You are Short Theta (time is your enemy) and Long Gamma (you benefit from explosive price moves). Selling Options (Short Premium)

: Your risk is strictly capped at the premium you paid . Even if the stock crashes to zero, you can't lose more than your initial investment. selling options vs buying options

Buying an option (a call if you're bullish or a put if you're bearish) gives you the , but not the obligation, to trade a stock at a fixed price. : You are Short Theta (time is your

: Generally lower (less than 50%) . For a buyer to win, the stock must move significantly and quickly in the right direction to overcome the cost of the premium and time decay. Buying an option (a call if you're bullish

Adam's new book, "Irrational Together: The Social Forces That Invisibly Shape Our Economic Behavior" (University of Chicago Press) Investopedia Buy or Sell Options? Which Is Better?

Buying vs. Selling Options: Which Is Riskier? - Investopedia

Selling an option (also called "writing") means you take on the to trade if the buyer chooses to exercise their right.