Long vs Short Options: Where is the Risk?🤔

Options are not just a game of winning, they are a game of distribution of risk.

Briefly about the essence:

• The buyer pays a premium → rights, but without obligations
• The seller receives a bonus → obligation to fulfill the conditions

Where is the money:

Key difference: Buyer - limited risk, unlimited profit. Seller - unlimited risk, limited profit.

Margin: Short positions require holding 10-15% of the value of the underlying asset. Long positions only require the premium paid in advance.

Conclusion: You buy an Option — you pay for insurance, but you can go bankrupt at x2. You sell an Option — guaranteed income, but you can lose everything. The choice is yours 💭