There are reasons why some people are willing to be sellers of options:

1. The seller of options has a higher profit probability and can get royalties.

We know that if an option buyer wants to make a profit, he must correctly judge the direction, the fluctuation and the time required for the fluctuation. These three points are indispensable. Only when these three points are achieved at the same time can the option buyer make big money, otherwise most of them will lose money.

The option seller does not have such high requirements on the market. As long as the market does not fluctuate greatly, the seller can earn royalties steadily. It can be said that option sellers win by probability, and collecting small profits gradually becomes big profits.

whether selling a call option or a put option is actually equivalent to selling forward volatility (short market outlook volatility). Strong volatility is not good for option sellers, while weak volatility is good for option sellers. The seller's profit point is that he can reap the volatility risk premium.

2. Time is the friend of the option seller and the enemy of the option buyer.

the value of options consists of intrinsic value and time value, and buying and selling options is actually buying and selling these two values. As a time-limited investment product, option itself is constantly depreciating.

that is to say, the time value of the option is consumed with time, and the closer the expiration date is, the faster the time value of the option decays until it reaches . If the contract is in the hands of the buyer at this time, then the loss of depreciation is borne by the buyer, and it is the seller who earns these losses.

Therefore, time value is the buyer's necessary expenditure and the seller's certain income. The advantage of time value to the seller is that the winning rate will be much higher than that of the buyer. The main profit point of selling options is to earn time value.

For example, many options are imaginary when they expire, and the value will return to zero, and the buyer of the options will not ask for exercise, so the seller can receive the royalty steadily.

3. Option sellers can reduce the risk of a single investment by diversifying their positions.

For example, when selling options, use the corresponding assets as "hedging" to reduce the buying cost. At this time, selling options is only a part of the portfolio strategy.

Like an insurance company, the seller can make up for the occasional "disaster" loss with multiple "premium" income. Use the method of gathering and dispersing risks to turn uncertain individual risks into collective risks that can be accurately predicted.

In this way, the amount of insurance claims as a whole is less than the premium paid by the insurance customers, which is the profit point of the seller.