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Arushi Agarwal
Option buying vs option selling: which is better?
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The choice between option buying and selling depends on individual risk tolerance and market outlook. Option buying offers limited risk with the potential for unlimited gains, making it suitable for those seeking speculative opportunities. However, it requires accurate market predictions and may lead to total loss. Option selling involves receiving premiums with limited profit but carries higher risks, including potential unlimited losses. Traders often prefer selling options in stable markets for consistent income. Ultimately, the decision hinges on one's risk appetite, market analysis, and strategic goals, with each approach having its advantages and drawbacks.