How Option Sellers Earn Profit
Option sellers (writers) make money very differently from buyers.
Sellers earn through:
Premium collection
Time decay (Theta) working in their favor
Market staying within a defined range
Selling gives higher probability of profit but unlimited risk if the market moves aggressively.
Example:
You sell Bank Nifty 49,000 CE at ₹220
Market stays sideways or falls
Premium collapses to ₹30
Your Profit = (220 – 30) × Lot Size
This profit results from the sold option expiring worthless.
Option sellers (writers) make money very differently from buyers.
Sellers earn through:
Premium collection
Time decay (Theta) working in their favor
Market staying within a defined range
Selling gives higher probability of profit but unlimited risk if the market moves aggressively.
Example:
You sell Bank Nifty 49,000 CE at ₹220
Market stays sideways or falls
Premium collapses to ₹30
Your Profit = (220 – 30) × Lot Size
This profit results from the sold option expiring worthless.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.