Why do option sellers lose money?
Could you please explain to me why option sellers sometimes end up losing money? I'm trying to understand the risks involved in this type of trading. Could you elaborate on the mechanisms that contribute to their potential losses? Additionally, are there any specific strategies or considerations that option sellers should keep in mind to minimize their chances of losing money? I'm keen on gaining a deeper understanding of this aspect of finance. Thank you for your help!
How many option sellers make money?
Could you please elaborate on the question, "How many option sellers actually earn a profit?" It seems to be probing into the profitability rates among those engaged in selling options in the financial markets. Are you interested in understanding the general success rate of option sellers? Or perhaps, you're seeking insights into the specific strategies or factors that lead to profitability for these individuals? Additionally, it would be helpful to clarify if you're referring to a specific type of option seller, such as retail investors, institutional traders, or market makers. This information would enable a more focused and detailed response.