Reliance Industries Limited
Formación

Part 4 Learn Institutional Trading

17
Two Sides of an Option Trade

Every option contract involves two parties:

a. Option Buyer

Pays a premium (price of the option)

Limited risk (only the premium paid)

Unlimited profit potential in some cases

b. Option Seller (Writer)

Receives the premium

Limited profit potential

Higher risk (sometimes unlimited)

Option buyers purchase potential, while sellers sell that potential in exchange for premium income.

Exención de responsabilidad

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.