Similar to how insurance companies make money despite the risk of payouts, option sellers rely on probabilities of gains. Option sellers may only lose money if the option turns against them, and they can make gains in other scenarios such as when the market goes up or even stays flat. Overall, option writing has become a popular strategy for big traders due to its high win probability. However, combining option buying and selling may lead to even greater profitability and win rates.
Short-term geopolitical jitters may pause market, but earnings will regain focus: Nischal Maheshwari
Market expert Nischal Maheshwari suggests the market might pause briefly. It will then focus on earnings. Defence stocks are gaining traction due to order wins