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Buyer vs Seller
Every option trade has two sides. One person's gain is the other's loss.
The Two Sides
Option Buyer
- • Pays the premium upfront
- • Wants the market to move big
- • Limited loss (only the premium)
- • Unlimited profit potential
Option Seller
- • Receives the premium upfront
- • Wants the market to stay calm
- • Limited profit (only the premium)
- • Unlimited loss potential
Call Option Premium
₹574
Buyer pays ₹574 → Seller receives ₹574
See It in Action
Call Option — Strike: 24500, Premium: ₹574
Where does Nifty end up?24,200
Buyer
₹-574
Lost 574 of ₹574 premium
Seller
+₹574
Keeping 574 of ₹574 premium
Market below strike
Nifty ended at 24,200, which is below the strike price of 24500. The call option expires worthless. Seller wins — they keep the full premium of ₹574. Buyer loses ₹574.
It's a Zero-Sum Game
Notice something? Buyer Profit + Seller Profit always equals zero.
Buyer (-574) + Seller (+574) = 0
Whatever the buyer gains, the seller loses, and vice versa. This is why options are called a "zero-sum game".