Lets try to understand the debate of option buying and option selling in detail :-
In option buying we can make profit only when DELTA is in our favour (other condition remain constant)
In Option selling you can make profit in two conditions :-
- A) when Direction remains in your favour
- B) When Stock or Index remained range bound
In short in option buying you make money only in one condition when both Trend or momentum is in your favour ( probability of wining is 33 % only), In option selling you can make money in two conditions (probability of wining 66%)
To summarise this topic I will say, Option Buying is the game of RISK REWAD and on the other hand option selling is all about Probability
