Option Buying vs Option Selling: Which One Suits You Best?

When you first hear the words “option buying” and “option selling,” it might sound like something only Wall Street wizards should worry about. But what if I told you these concepts are not just for the elite? In fact, with a little guidance—from a stock market mentor or even the best teacher in trading—you could learn how to make these strategies work for you.

Think of it like a cricket match. Option buyers are like the batsmen trying to score big runs with every ball, while option sellers are the bowlers aiming to limit runs and take control. Both are crucial, but they play very different games. Ready to find out which role suits you best?

Let’s dive into the world of option buying vs option selling—in simple words.

Understand option buying strategy with insights from the best teacher in trading & a trusted stock market mentor. Learn to trade smart, not hard.

Introduction to Options

Let’s start with the basics.

An option is a contract that gives you the right, but not the obligation, to buy or sell a stock at a fixed price within a certain time. Sounds fancy? Don’t worry—it’s just like booking a movie ticket in advance. You reserve your seat (option), but whether you go to the movie (execute it) is up to you.

There are two main types of players here:

• Option Buyers – They pay a premium to buy the right to trade.
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• Option Sellers – They receive the premium but take on the risk.
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What is Option Buying?

Option buying is when you purchase a call or a put option, expecting the price to move in your favor.

• A Call Option is bought when you expect the stock to rise.
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• A Put Option is bought when you expect it to fall.
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It’s like buying a lottery ticket. If the price moves as expected, the rewards can be huge. If not, you lose only the price you paid for the ticket.

What is Option Selling?

Option selling, or writing an option, is when you sell a call or a put to someone else.

• A Call Seller expects the stock to stay flat or fall.
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• A Put Seller expects the stock to stay flat or rise.
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Here, you get paid upfront (called a premium), but you’re on the hook if the buyer turns out to be right. You're essentially taking a bet against the buyer.

Risk and Reward in Option Buying

Let’s be honest—option buying is tempting because the rewards are massive.

Pros:

• Limited loss (only the premium you paid).
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• Unlimited profit potential.
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Cons:

• You need to be very right about both direction and timing.
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• Most options expire worthless. So your timing must be sharp.
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Risk and Reward in Option Selling

Now, option selling feels more stable.

Pros:

• Higher success rate (most options expire worthless).
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• You earn a steady income (premium).
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Cons:

• Unlimited risk if the market moves against you.
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• Requires strict risk management.
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Selling is like being the insurance company—you collect premiums regularly, but one big claim can wipe out your profits.

Capital Requirement: Who Pays More?

Here’s a fun fact: option sellers need more capital.

That’s because they need to keep margins with the broker to cover potential losses. Option buyers, on the other hand, just pay the premium.

So, if you’re starting out with a small budget, buying may be more feasible.

Market View: Bullish or Bearish?

Understanding your market view is key to choosing between buying and selling.

• If you expect strong moves, go for buying.
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• If you expect the market to stay within a range, selling works better.
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Imagine watching clouds. If you think a storm’s coming, you grab your umbrella (buy options). If you think it’ll just drizzle, you bet against rain (sell options).

Time Decay: The Silent Killer

Time decay is a slow poison for buyers and a blessing for sellers.

Options lose value as they approach expiry. That means:

• Buyers need the move to happen quickly.
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• Sellers profit even if the market stands still.
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If you're a buyer, remember: every day you wait is a day you lose.

Volatility: Friend or Foe?

Volatility shakes the market—but affects buyers and sellers differently.

• Buyers love high volatility. Bigger moves = higher chances of profit.
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• Sellers prefer low volatility, where the price stays calm.
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It’s like surfing. Big waves are thrilling but risky. Calm seas are safe but slow.

Option Buying Strategy for Beginners

If you’re new, keep it simple.

Here’s a basic option buying strategy:

• Only risk what you can afford to lose.
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• Stick to ATM (At-the-Money) or slightly OTM (Out-of-the-Money) options.
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• Use short expiries (weekly or monthly).
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• Avoid trading around big news events.
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And most importantly, follow a stock market mentor or the best teacher in trading who can help you make informed decisions.

Popular Option Selling Techniques

Option selling isn’t just about throwing darts. It requires precision.

Top option selling strategies:

• Covered Call – Sell calls against stocks you already own.
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• Iron Condor – Bet on the market staying within a range.
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• Credit Spreads – Limit risk while collecting premium.
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It’s all about collecting small, consistent profits and managing your risk wisely.

Real-Life Example: Buying vs Selling

Let’s say Stock X is trading at ₹100.

• Buyer’s view: You buy a ₹105 call at ₹2, expecting the stock to hit ₹110.
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• Seller’s view: Someone sells you that call, expecting the stock to stay below ₹105.
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If the stock hits ₹110:

• Buyer gains ₹3 (₹110-₹105 - ₹2 cost).
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• Seller loses ₹3.
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If the stock stays at ₹100:

• Buyer loses ₹2.
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• Seller gains ₹2.
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Same stock, two opposite views. That’s the beauty of the options game.

What Makes a Good Option Buyer?

A good option buyer:

• Has a strong directional view.
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• Is patient and disciplined.
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• Accepts small losses and avoids overtrading.
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• Learns from a stock market mentor or community.
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It’s not about luck—it’s about preparation.

What Makes a Good Option Seller?

A good option seller:

• Manages risk like a pro.
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• Trades with sufficient capital.
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• Doesn’t chase every opportunity.
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• Follows a proven system taught by the best teacher in trading.
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They know when to strike and when to stay back.

Which One Should You Choose?

Let’s recap:

Criteria

Option Buying

Option Selling

Capital Required

Low

High

Risk

Limited

Unlimited

Reward Potential

Unlimited

Limited

Success Rate

Low

High

Time Decay Impact

Negative

Positive

Choose option buying if:

• You’re starting with small capital.
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• You prefer high rewards and can accept losses.
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• You’re learning under a good stock market mentor.
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Choose option selling if:

• You have more experience and capital.
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• You want consistent income.
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• You’re ready to manage risk effectively.
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 What Makes a Good Option Buyer?

A good option buyer:

• Has a strong directional view.
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• Is patient and disciplined.
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• Accepts small losses and avoids overtrading.
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• Learns from a stock market mentor or community.
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One such mentor making waves in the trading education space is Abishek Jha. Known for his practical approach and deep understanding of market psychology, Abishek Jha is considered by many to be the best teacher in trading in India today. His teaching style is easy to grasp, especially for beginners, and his focus on real-world strategies helps students build both confidence and consistency.

If you're serious about mastering options, following someone like Abishek Jha can save you years of trial and error. He emphasizes clarity over complexity and is known for turning even tough concepts into easy-to-understand lessons.

What Makes a Good Option Seller?

A good option seller:

• Manages risk like a pro.
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• Trades with sufficient capital.
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• Doesn’t chase every opportunity.
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• Follows a proven system taught by experienced professionals.
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In fact, Abishek Jha’s training modules include both option buying and option selling techniques, ensuring traders have a 360-degree view of the market. Whether you prefer to play safe or swing for the fences, his mentorship can guide you in choosing the right strategy.

Conclusion

Whether you’re a thrill-seeking buyer or a steady-selling strategist, both sides of the options market have their unique charm. It’s not about which one is “better,” but about what suits your mindset, capital, and strategy.

With the right option buying strategy, proper guidance from the best teacher in trading, and insights from a seasoned stock market mentor, you can navigate this space with confidence and clarity.

So, the next time someone asks, “Option buying vs option selling—what’s better?” you’ll have more than just an opinion. You’ll have understanding.

FAQs

Is option buying good for beginners?

Yes, because the risk is limited to the premium paid, making it ideal for those with small capital and learning the ropes.

Can I earn a steady income through option buying?

Not usually. Option buying is more about occasional big wins. For steady income, option selling is more reliable.

Who is the best teacher in trading for learning options?

A good teacher will explain strategies in simple terms, focus on real-world examples, and offer mentoring—look for someone highly rated by students.

What’s a simple option buying strategy I can start with?

Buying At-The-Money weekly options with a clear stop-loss and exit plan is a good place to begin.

How can a stock market mentor help me with options trading?

A mentor provides structure, helps you avoid emotional decisions, and shortens your learning curve with practical advice.