Part 2 Intraday Trading Master Class

How Option Sellers Operate

Option buyers pay premium and carry limited risk.

Option sellers (also called writers) collect premium and take unlimited risk.

Buyers need only premium (small capital).
Sellers need margin (large capital).

Example:
If a seller sells 20000 CE for ₹100 and the market rises sharply, their loss increases point-by-point.

Option selling is considered profitable for experienced traders because of:

Time decay (theta)

Market staying within a range

High probability strategies

But losses can be huge if hedging is not done properly.