Part 1 Intraday Master Class

Participants in Option Markets

There are generally four participants in an options market:

Buyers of Call Options – Expect prices to rise.

Sellers (Writers) of Call Options – Expect prices to remain stable or fall.

Buyers of Put Options – Expect prices to fall.

Sellers (Writers) of Put Options – Expect prices to remain stable or rise.
Buyers pay the premium and hold limited risk but unlimited profit potential. Sellers receive the premium but bear potentially unlimited risk, especially in the case of uncovered or “naked” positions. This difference in risk profile defines the strategic balance of the options market.