Introduction Options Shorting/Writing

In Continuation with Previous Article  Why Retail Traders "Buy Options" and Professional Trader "Write Options"
What is Option Writing
Option Writing means Instead of Buying Options (Buying Call or Put), trader is shorting them, Just Like we short Futures, Option can also be shorted. Universal Rule of Market is Every Buyer will have a Seller so same applies in Options so If Trader A is Buying Option by paying premium , Trader B will short/write it.
This act of selling either calls or puts first, hoping that the value goes down and  buy it back at a lower price to earn a profit is called Option Writing.
As I have discussed in Last article Writes always have advantage as Probability of trade going in their favor is 3 times more than buying options.
With Increase in Lot size,many traders are preferring trading in options without having proper knowledge and eventually losing money.
The idea behind this post is to explain the basics on option writing/shorting, and  how including them in trading can improve the odds of winning.

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